CENTRAL INTELLIGENCE BULLETIN - 1958/01/27

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• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03015202
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• Document Creation Date: January 27, 2020
• Document Release Date: January 30, 2020
• Publication Date: January 27, 1958

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27 January 1958
Copy No, 137
CENTRAL
INTELLIGENCE
BULLETIN
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21 JANUARY 1958
L THE COMMUNIST BLOC
iihrushchev parries US proposal for
control of outer space. (I)
Ehrushchev proposes major
reorganization in agriculture. (I)
USSR steps up countermoves against
Baghdad Pact meeting. (2)
USSR - Long Range Aviation exercises.
LATE ITEM
Peasant resistance in Rumania (X)
Nasir going ahead with plans for
Egyptian-Syrian union. (4)
Egypt offered additional Soviet loan. (4)
Syrians ship more arms to Alexandria
for Algerian rebels.
Jordan-Bedouin army faction may be
plotting against King Hussayn.(5)
Cyprus authorities prepare for renewal
of violence. (8)
Leftists may gain in Okinawa assembly
election. (7)
II L THE WEST
Possible rightist-centrist deal in
Guatemala. (9)
Serious friction could develop over
status of Communists in Venezuela. (9)
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CENTRAL INTELLIGENCE BULLETIN
27 January 1958
DAILY BRIEF
I. THE COMMUNIST BLOC
9s-fe_
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Khrushchev has sought to parry President Eisenhower's
proposal to establish international control of outer space
for peaceful purposes. He said the USSR would be willing
to discuss this question only as part of a general disarma-
ment agreement which would ban nuclear weapons, suspend
nuclear tests, and liquidate foreign military bases.
(Page 1)
Khrushchev has made another important proposal for
reorganizing the Soviet economy. By eliminating Machine
Tractor Stations, a key element in the organization of Soviet
agriculture. he hopes to cut costs and spur production.
(Page 2)
The USSR has stepped up its diplomatic and propaganda
offensive against the Baghdad Pact council meeting in Ankara.
On 23 January the Soviet ambassador in Karachi made the first
official protest to Pakistan on the alleged establishment of
American missile bases there, and the Soviet ambassador in
Tehran outlined to top Iranian officials the details of a "new"
economic aid policy which offered "anything you want" without
any strings. (Page 3)
At least six Soviet BULL piston medium bombers landed at
Anadyr airfield in northeast Siberia on 26 January. Since it ap-
pears that these aircraft are being used in a support role, it is
77,0 possible these flights may indicate that final preparations are
being made for Arctic exercises by Long Range Aviation ele-
ments.
TOP SECRET
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IL ASIA-AFRICA
Nasir, despite his reservations about Syrian-
Egyptian union, has ordered a supporting propaganda
campaign. He states he is proposing a formal declara-
tion of union by the two parliaments without plebiscites.
He also envisages one president for the union, with uni-
fied defense, finance, and foreign affairs ministries.
(Page 4)
The National Bank of Egypt has apparently been of-
fered a Soviet loan at current banking interest rates to
provide foreign exchange up to the equivalent of about
$15,000,000. Despite its foreign exchange shortages, no
decision has been taken by Cairo, probably because it is
still hopeful that a financial settlement can be reached with
the British in the talks scheduled to begin on 30 January.
A new shipm nt nf nrmq frnm Syria is en mute tn the
Algerian rebels.
a Soviet ship would reach
Alexandria that day to offload arms, ammunition, and a
"broadcasting station" for the Algerians. This may be
Syrian equipment of French or German manufacture made
surplus by the acquisition of Soviet materiel.
(page, 5)
There
are further reports of plotting against King Hus-
sayn of Jordan by members of the key Bedouin faction in the
army on whom Hussayn has relied for support against a hos-
tile Palestinian majority in his country. Although the King
has been warned, a determined effort by key Bedouin units to
overthrow the monarchy would probably succeed.
(Page 6)
Authorities on Cyprus are reviewing security arrange-
ments in anticipation of widespread violence following an
27 Jan 58
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announcement expected sometime in the near future of a
new British policy for Cyprus. Turkish demands for "im-
mediate" partition and Greek insistence on a plan for
eventual self-determination of the island as a unit make
an outbreak of violence and the further deterioration of
NATO's eastern flank almost inevitable.
Okinawan leftists are likely to make new gains in elec-
tions to be held in Naha on 2 February. Fifteen seats in
the city assembly are at stake, and supporters of Mayor Saichi
Kaneshi could gain control of the assembly.
(Page 7)
III. THE WEST
In Guatemala, General Ydigoras has indicated readiness
to bargain with the supporters of Cruz Salazar. Congress
which will select the president, since no candidate received
a majority of votes, appears increasingly inclined to select
Ydigoras because his lead, especially in Guatemala City, is
so large. The decision will probably be made public within
ten days after Congress begins checking ballots on 27 January.
(Page 8)
Serious friction could develop between civilian elements
and the Venezuelan governing junta, which is predominantly
military, over the future status of Communism. Venezuelan
Communist party members are known to have been an impor-
tant element in the Patriotic Front, a civilian organization
composed of the four principal opposition factions which pro-
moted the ouster of President Perez. (Page 9)
27 Jan 58
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LATE ITEM
* "Strong resistance" by peasants in the eastern portion
of Rumania to further agricultural collectivization is reported
to have required armed intervention by the regime. Any such
expressions of discontent on the part of the peasants are prob-
ably in reaction to the regime's long-expected and recently
publicized intention to complete collectivization in these re-
gions but will probably remain limited to localized actions.
While the areas in question have been closed off to Western
observers since 20 January, earlier reports attributed these
security measures to possible Soviet troop rotation moves in
Rumania.
27 JANUARY 1958
27 Jan 58
Marasesti
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Focsani Galati
RUMANIA - - SITES OF REPORTED PEASANT RESISTANCE
DAILY BRIEF
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I. THE COMMUNIST BLOC
Khrushchev Seeks to Retain Initiative on East-
West Talks
IChrushchev's remarks on foreign policy in his speech
of 22 January at Minsk were intended to maintain the USSR's
diplomatic and propaganda initiative in the East-West ex-
change on summit talks. He sought to parry President Eisen-
hower's proposal to establish international control of outer
space for peaceful purposes by stating that the USSR would
be willing to discuss this question only as part of a general
disarmament agreement which would ban nuclear weapons,
suspend nuclear tests, and liquidate foreign military bases.
The confident and unyielding tone of his speech, together
with his extreme terms for discussing international control of
missiles, further suggest that the Soviet campaign for heads-of-
government talks is presently aimed not at serious substantive
negotiations but at discrediting Western policy and disrupting
Western unity. The Kremlin apparently believes that mount-
ing popular pressure in the non-Communist world for summit
talks will progressively weaken the Western powers' negotiat-
ing position and eventually force them to agree to negotiations
on terms more favorable to the USSR.
Khrushchev contrasted the "urgent" Soviet calls for a heads-
of-government conference with alleged Western efforts to evade
talks by putting forward "impossible" conditions--a reference
to the status of Eastern Europe and the problem of German re-
unification. He charged that the "imperialists" are trying to
intimidate the Soviet bloc by promising to build missile bases
and station nuclear weapons on the territories of the members
of NATO and other "aggressive blocs."
Khrushchev added no new items to the agenda for a summit
conference suggested in Bulganin's recent letters--banning nu-
clear tests, ending "war propaganda," reducing foreign forces
in Germany and other European countries, establishing a nu-
clear-free zone in central Europe, and discilissin the Middle East
situation and international economic relations.
---CONFIDEAPH24L-
27 Jan 58
CENTRAL INTELLIGENCE BULLETIN
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*FS
Khrushchev's Proposal for Agricultural Reorganization
Khrushchev has proposed the virtual abolition of a his-
toric agricultural institution, the Machine Tractor Station
(MTS), in another of his bold proposals for economic reor-
ganization. This will transfer a large quantity of production
machinery from state to collective ownership--a step which
Stalin as late as 1952 said "could only retard our advance
toward Communism." The MTS has been historically one of
the three basic Soviet agricultural institutions, along with
the state farm and collective farm. The MTS has also been
a major instrument for centralized party control in the coun-
tryside. It is a state-owned centralized pool of agricultural
machinery with operating personnel which serves a number
of collective farms on a contract basis.
The stations are now to be gradually relegated to the
status of repair depots and their machines sold to the col-
lective farms. The move appears logical and should result
in more efficient farming since the relationship between the
MTS and the collective farms has had various drawbacks.
The Soviet leadership apparently will embark on this re-
organization as a means of cutting agricultural costs and spur-
ring production toward the goal of catching up with the West.
Khrushchev indicated he now intends to rely on party organiza-
tions in the collective farms as instruments for stimulating
production and maintaining political leadership. He thus ap-
pears confident that the peasants have come to accept the col-
lective farm system and that the MTS is no 1pnger needed as
a political control organ in the countryside.
CONFIDENTIAL
27 Jan 58
CENTRAL INTELLIGENCE BULLETIN Page 2
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Stepped Up Soviet Offensive Against Baghdad Pact
Council Meeting
The USSR has followed up its propaganda charges
against the Baghdad Pact council meeting in Ankara
with a private warning to Pakistan not to accept Amer-
ican missile bases on its territory. Moscow has also
made a sweeping offer of economic aid to Iran designed
to provide Tehran with an alternative to its membership
in the Baghdad Pact.
Moscow broadcasts allege that the United States will
attempt to force American rocket and nuclear bases on
pact members and that they will have to pay for "unselfish"
American aid with the loss of their sovereignty.
Soviet Ambassador to Pakistan, I. F. Spedko, on
23 January protested to Pakistani Foreign Minister Noon
on the alleged establishment of American missile bases
in Pakistan. Noon denied that any such base either had
been established or was planned and offered personally to
take the Soviet ambassador to any suspected location in or-
der to disprove the charge. This is the first Soviet protest
to Pakistan on the subject, although Moscow radio infre-
quently has voiced such charges.
On the eve of his departure for a Moscow visit, Soviet
Ambassador Pegov gave the Iranian foreign minister and
the director of plan organization details of a "new" economic
aid policy toward Iran which he would present formally on
his return from Moscow. Pegov stated that the USSR would
furnish Iran "anything you want" without strings. The USSR
has made its economic overtures to Iran increasingly public
in the hope of building popular pressure for accepting at
least some of the offers. Pegov's "new" economic aid policy
toward Iran may be a summary of 1957 "offers" which cov-
ered a broad field for cooperation in technical and investment
fields of interest to Iran.
CONFIDENTIAL
27 Jan 58 CENTRAL INTELLIGENCE BULLETIN
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II. ASIA-AFRICA
Nasir's Plans for Egyptian-Syrian Union
President Nasir is going ahead with plans for union
with Syria, despite continued misgivings. He is reported
proposing resolutions by the two parliaments declaring the
formation of the union, presumably under his presidency.
The Japanese charge in Damascus told an American official
on 23 January that the Syrian Socialist leader Michel Aflaq
had gone to Cairo to participate in drawing up an Egyptian-
Syrian constitution.
The plan also calls for unified defense, finance, and
foreign ministries, but separate parliaments under a su-
preme parliament. Defense would be under the administra-
tion of Egyptian General Abd al-Hakim Amir, and Syria's
General Bizri would be given a nonpolitical assignment with
the joint command. Khalid al-Azm, Syria's pro-Soviet dep-
uty premier, would not hold any position within the union.
after union,
Nasir hopes to move up to 4,0002000 Egyptian peasants into
Syria for exploiting underdeveloped agricultural areas, with
the first group scheduled to leave at the end of February.
Any proposal for the migration of such a number is unreal-
istic and would create serious problems in Egypt and strong
resentment in Syria.
SECRET
27 Jan 58
CENTRAL INTELLIGENCE BULLETIN Page 4
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New Shisment of Arms from ria En Route
to Algerians
Another shipment of arms from Syria is en route to
the Algerian rebels.
the Soviet merchant ship Omsk, cargo
capacity 7,500 tons, had on 21 January taken on a cargo of
arms, ammunition, and a "broadcasting station" for the
Algerians and would dock at Alexandria on 23 January. Al-Dib
has been identified with the procurement of arms for the Al-
gerian rebels since the fall of 1956.
The materiel involved may be of French or German man-
ufacture., made surplus by Syrian acquisition of Soviet equip-
ment.
such surplus Syrian equipment was being transferred to
the Algerians but that some difficulties were being encountered
' in finding transport between Latakia and Alexandria.
Algerian agents took possession o
arms shipments in western Egypt during September, and that
at least some arms were passing through Libya to Tunisia.
TOP SECRET
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Name
Jordanian Bedouin Army Leaders Reported Plotting to
Overthrow Monarchy
A plot by leaders of the most powerful Bedouin faction
in the Jordanian Army to overthrow King Hussayn has been
The movement is said to center among�tft11ewanreren
Sakhr tribe, which includes the commander and most of the
personnel of the armored brigade. Support of the Bedouin
units has been the basis of the King's successful maintenance
of authority in the face of the hostile Palestinian majority in
his country. The plotters are reported to plan a republic un-
der Akif Fayiz, defense minister and most prominent Bedouin
representative in the present government. The timing of the
attempt is unspecified.
King Hussayn has been warned on the basis of this and
earlier reports of disaffection among the Bedouins, some of
whom have been dissatisfied over failure to receive what they
consider adequate reward for supporting the palace in last
April's crisis. Although Hussayn will presumably take all
possible measures to cope with any Bedouin unrest, a deter-
mined move to overthrow the monarchy by key Bedouin units
would probably succeed, since Hussayn has no alternative ef-
fective source of support.
Last fall Egyptian propaganda which attacked Hussayn at-
tempted at the same time to cultivate the Bedouins, and in
early January members of the ultranationalist Baath pary are
reported to have attempted to exploit Bedouin dissatisfaction
with the intention of overthrowing the unpopular pro-Western
Hashim-Rifai government.
SECRET
27 Jan 58 CENTRAL INTELLIGENCE BULLETIN
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� di IL.,
NitS
Leftists May Gain in Okinawa Assembly Election
A by-election in Naha, Okinawa, on 2 February to
add 15 seats to the city assembly offers leftist elements
an opportunity to gain control of Naha's legislative body.
Leftists hold 12 of the 30 seats in the present assembly
and must win 11 in the by-election to gain control of the
expanded body. While hard pressed to stage such a large
gain, several factors may assist them.
The election will be held in the recently merged dis-
trict of Mawashi which gave leftist Saichi Kaneshi his
largest majority in his election as mayor earlier this
month. The leftist Minren organization probably has
gained an advantage on the strength of Kaneshi's victory
and, as was the case in that election, has started cam-
paigning earlier and more aggressively than its conserva-
tive-Socialist opposition.
Mayor Kaneshi, who took office on 20 January, has the
authority to dissolve the entire assembly at his convenience
and to call new elections. In the event leftists fail to win
control of the assembly in the by-election, Kaneshi may re-
sort to new elections in order to capitalize on city-wide
CONFIDENTIAL
27 Jan 58
CENTRAL INTELLIGENCE BULLETIN Page 7
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`44�60
III. THE WEST
Possible Rightist-Centrist Deal in Guatemala
The climate for agreement between rightist General
Miguel Ydigoras and Colonel Jose Luis Cruz, his closest
competitor in the 19 January Guatemalan presidential
election, has improved. One important Ydigoras adviser
said on 23 January that Ydigoras is definitely ready to
bargain with the pro-Cruz groups, and another supporter
said Ydigoras plans to have at least one pro-Cruz cabinet
member. Congress appears increasingly inclined to select
Ydigoras, since his lead, especially in Guatemala City, is so
great. The decision will probably be made public within ten
days after Congress begins checking ballots on 27 January.
None of the candidates is expected to cause trouble prior
to selection of the president, although rank-and-file follow-
ers of Cruz may create sporadic disorders later if Ydigoras
is chosen. The Communist-infiltrated Re volutionary party,
whose candidate, Mario Mendez Mont enegro, ran close to
Cruz for second place, is expected to support Congress' de-
cision for president and to attempt to gain some voice in the
government.
Contrary to what many Ydigoras opponents fear, the 62-
year-old retired general probably could not establish a dic-
tatorship even if so inclined. As president, he would need
the toleration, if not the active support, of the 9,000-man
army. Most officers are basically moderate-minded and have
shown themselves responsive to public opinion. Also, Ydigoras
would have to work with a Congress in which, at least during
the next two years, his partisans will be in a minority.
SECRET
27 Jan 58 CENTRAL INTELLIGENCE BULLETIN Page 8
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11.1% I I. LI
Nwal
Communists May Exploit Venezuelan Political Instability
The status of the outlawed Venezuelan Communist party
(PCV) could be a source of serious friction among the sev-
eral contending military and civilian groups as the governing
junta attempts to restore order and formulate a transitional
program of government. Communists are an important fac-
tion in the Patriotic Front, an organization prominent in the
ouster of President Perez which is composed of the PCV, two
leftist but non-Communist parties, and a Catholic-oriented
party.
The front has not fully endorsed the new regime, which
Is predominantly military. Front leaders in Venezuela, in-
cluding the top Communist spokesman, have called for legal-
ization of all parties, early elections, and the return of all
exiles. The exiled heads of the three non-Communist parties,
however, have avoided reference to the Communists in their
general statements on unified action. Civilian unity appears
uncertain in the face of the Communist issue and the probable
conflicts between front leaders and exiled leaders in determin-
ing a common political program.
The military, who are believed to be suspicious of the
front, may attempt to close ranks to preserve their traditional
dominant position in the government, and will possib
on the continued suppression of Communist activity.
-SECRET
27 Jan 58
CENTRAL INTELLIGENCE BULLETIN
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DISTRIBUTION
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 Mobilization
Special Assistant for Security Operations Coordination
Operations Coordinating Board
Board of Consultants on Foreign Intelligence Activities
Special Assistant for Foreign Economic Policy
The Treasury Department
The Secretary of the Treasury
The Department of State
The Secretary of State
The Under Secretary of State
The Deputy Under Secretary for Political Affairs
The Deputy Under Secretary for Administration
The Deputy Under Secretary for Economic Affairs
The Counselor
Director, International Cooperation Administration
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, 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
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
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TOP SECRET
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CENTRAL INTELLIGENCE BULLETIN
27 January 1958
DAILY BRIEF
I. THE COMMUNIST BLOC
\\
\''\\
Ehrushchev has sought to parry President Eisenhower's
proposal to establish international control of outer space
for peaceful purposes. He said the USSR would be willing
to discuss this question only as part of a general disarma-
ment agreement which would ban nuclear weapons, suspend
nuclear tests, and liquidate foreign military bases.
(CONFIDENTIAL) (Page 1)
N
Khrushchev has made another important proposal for \\
reorganizing the Soviet economy. By eliminating Machine
Tractor Stations, a key element in the organization of Soviet k
\:1
agriculture, he hopes to cut costs and spur production.
(CONFIDENTIAL) (Page 2)
The USSR has stepped up its diplomatic and propaganda Z
offensive against the Baghdad Pact council meeting in Ankara.
official protest to Pakistan on the alleged establishment of
On 23 January the Soviet ambassador in Karachi made the first
American missile bases there, and the Soviet ambassador in
Tehran outlined to top Iranian officials the details of a "new"
economic aid policy which offered "anything you want" without
any strings. (CONFIDENTIAL) (Page 3)
At least six Soviet BULL piston medium bombers landed at
Anadyr airfield in northeast Siberia on 26 January. Since it ap-
pears that these aircraft are being used in a support role, it is
possible these flights may indicate that final preparations are
being made for Arctic exercises by Long Range Aviation ele-
ments. (TOP SECRET EIDER)
.---
The National Bank of Egypt has apparently been of-
fered a Soviet loan at current banking interest rates to
provide foreign exchange up to the equivalent of about
$15,000,000. Despite its foreign exchange shortages, no
decision has been taken by Cairo, probably because it is
still hopeful that a financial settlement can be reached with
the British in the talks scheduled to begin on 30 January.
(CONFIDENTIAL)
A new shipment of arms from Syria is en route to the
Algerian rebels. An Egyptian military adviser in Damascus
notified Cairo on 23 January that a Soviet ship would reach
Alexandria that day to offload arms, ammunition, and a
"broadcasting station" for the Algerians. This may be
Syrian equipment of French or German manufacture made
surplus by the acquisition of Soviet materiel. (TOP SECRET
EIDER) (PaglAp-Proved for Release: 2019/08/20 C03015202
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Serious friction could develop between civilian elements
and the Venezuelan governing junta, which is predominantly
military, over the future status of Communism. Venezuelan
Communist party members are known to have been an impor-
tant element in the Patriotic Front, a civilian organization
composed of the four principal opposition factions which pro-
moted the ouster of President Perez. (SECRET) (Page 9)
LI
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In Guatemala, General Ydigoras has indicated readiness
to bargain with the supporters of Cruz Salazar. Congress,
which will select the president, since no candidate received
a majority of votes, appears increasingly inclined to select
Ydigoras because his lead, especially in Guatemala City, is
so large. The decision will probably be made public within
ten days after Congress begins checking ballots on 27 January.
(SECRET) (Page 8)
46
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RUMANIA - - SITES OF REPORTED PEASANT RESISTANCE
27 JANUARY 1958
SEA
44
80126
27 Jan 58
DAILY BRIEF
TOP SECRET EIDER
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