CENTRAL INTELLIGENCE BULLETIN - 1958/03/11

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03177776
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 16
• Document Creation Date: January 27, 2020
• Document Release Date: January 30, 2020
• Publication Date: March 11, 1958

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CEYTRAL
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I 'VS 01.A.41.1-4 4
11 MARCH 1958
I. THE COMMUNIST BLOC
Peiping publicizing Asian Communist
peace offensive for maximum propa-
ganda impact as SEATO meeting begins.
0
II. ASIA-AFRICA
Indonesia - Major military campaign
under way as Djakarta launches assault
on Sumatra.
8idLArabiaaanvels all leaves
Cairo government
en y g lights explosiveness
of Saud's internal difficulties.
Egypt probably plans creation of leg-
islative council in Gaza as appeal to
rally all Palestinian refugees.
India - USSR may finance larger of two
new oil refineries projected by Indian
Government.
0
Pakistani premier's threat to change
foreign policy discounted.
Jordan - Husayn's plan to bar Syrian
trucks could provoke effective economic
blockade by UAR. 0
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CENTRAL INTELLIGENCE BULLETIN
11 MARCH 1958
DAILY BRIEF
I. THE COMMUNIST BLOC
dV46
Communist China - Vietnam: Peiping% endorse-
ment of Hanoi's proposals for early North-SoOth talks
on bilateral troop reductions and, trade in Vietnam is
intended to demonstrate bloc initiative for a nego-
tiated settlement of Asian issues. Peiping is relat-
ing this latest gesture to other recent bloc proposals
9--/e.-� for East-West talks: and to its own decision to with-
draw Chinese troops from Korea. The Hanoi-Peiping
move, like the 8 March Pravda attack on SEATO, was
probably timed to achieve maximum impact on the
current SEATO meeting in Manila.
(Page 1)
II. ASIA-AFRICA
*Indonesia (as of 0001 hours, 11.March 1958): Indo-
nesian army forces made new landings on the east coast
of Central Sumatra on 10 March and are apparently con-
verging on the dissident-held oil center of Pakanbaru. This
movement may be one of a three-pronged attack on the
dissident strongholds of Padang and Bukittinggi on the
west coast. The other two would involve an aiit)hibious
assault in the Padang area and an overland advance south-
ward from Medan. (Page 2)
(Map)
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*Saudi Arabia: All leaves of Saudi military personnel, in Zt
both the army and auxiliary forces, have been canceled, pre-
sumably from fear of Egyptian-inspired action against the
King. Cairo has made extra=
ordinary efforts to evacuate its personnel from Saudi Arabia
by the 11 March deadline,
Nasir may accept Saud's offer to meet him personally.
The Egyptian government-controlled news agency, how-
ever, is disseminating a statement by a Lebanese opposi-
tion leader that "it would not be strange for the world to
see an uprising from the heart of Saudi Arabia," led by
rinces "who boil with liberated Arab nationalism."
Egypt�Gaza strip: Cairo has begun its propaganda
-ciTT�p to associate all Palestine Arab refugees with the
ejuvenated "Palestine" legislative council in Gaza sched-
led to be announced about 15 March. The move is likely
o cause more unrest in West Jordan and further disturb
he Israelis. (Page 4)
India - USSR: The USSR may provide financial aid for
one orthe two oiTrefineries the Indian Government intends
to build in eastern India. This was intimated privately by
the Indian minister for mines and fuel early in 1958, and
was publicly expressed on 8 March by the leader of a So-
viet parliamentary delegation now touring India. Soviet
interest probably will center on a refinery planned west
of Calcutta in Bihar State, since Rumania is reported to
have made a firm aid offer for a small one to be built in
Assam. (Page 5) (Map)
11 Mar 58
DAILY BRIEF ii
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Pakistan: Pakistani Prime Minister Noon's statements
on 8M7CIT�which included a threat to turn "elsewhere" if
ftill British and American support on Kashmir is not forth-
coming by April, spring from frustration and a need to
counter recent opposition criticism of the government's eco-
nomic dependence on the West and its lack of independence
in foreign policy. These statements by the irresponsible
and unpredictable prime minister--who stressed the neces-
sity of Pakistan's alliances with the West only two days
earlier--are unlikely to result in any change in the govern-
ment's foreign policies which are largely controlled by
President Mirza.
Jordan - Syria: Jordan may be subjected to an eco-
nomic blockade by the United Arab Republic if King Husayn
carries through his ill-conceived plan to prevent Syrian
trucks from entering Jordan and Iraq, in retaliation for
recent Syrian restrictions on Jordanian trucking. Since
Jordan's established supply routes are from the Mediter-
ranean through Syria' retaliatory measures imposed in
turn by the United Arab Republic could further seriously
dislocate the Jordanian economy.
(Page 6) (Map)
DAILY BRIEF iii
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I. THE COMMUNIST BLOC
Communists Propose New Negotiations on Vietnam
Peiping is publicizing Hanoi's 7 March letter to South
Vietnam as another bloc initiative for a negotiated settle-
ment of Asian issues. The letter, sent by Premier Pham
Van Dong to President Diem of South Vietnam, proposed
early North-South talks to discuss bilateral troop reduc-
tions and trade as first steps toward reunification of Viet-
nam.
Peiping is relating the letter to the recent "peace" pro-
posals of the USSR, Poland, and North Korea, and to Corn.:
munist China's decision to withdraw its troops from Korea.
The release of the letter apparently was timed to coincide
with preparations for the SEATO nations' meeting in Manila.
In a 9 March Foreign Ministry statement on the letter, Pei-
ping charged that the United States is building military bases
in South Vietnam and is trying to "drag" Saigon into SEATO.
Peiping and Hanoi seem to be concerned over the steady
improvement of South Vietnam's army and are subjecting
the American military aid program in South Vietnam to in-
creasing criticism. The Communists in recent months
have accelerated their campaign to persuade the Interna-
tional Control Commission (ICC) to label this assistance
as a violation of the 1954 Geneva Armistice.
11 Mar 58 CENTRAL INTELLIGENCE BULLETIN Page 1
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II. ASIA-AFRICA
Indonesia (As of 0001 Hours, 11 March 1958)
The Indonesian Army made new landings on the east
coast of Central Sumatra on 10 March with the objective
of closing in on the dissident-held oil center of Pakan-
baru. The Indonesian foreign minister informed the
American ambassador in Djakarta that military opera-
tions had started at Pakning, an oil terminal at the
mouth of the Siak River, and that the troops involved in
this operation would be moving upriver, toward Pakan-
baru. He also indicated that other forces had landed at
Dumai, 50 miles to the north, and would proceed over-
land to Pakanbaru. The foreign minister's statements
are supported by information received from Caltex of-
ficials:, British air reconnaissance, and press reports.
Other press reports, as yet unconfirmed, state that
the Pakanbaru operation is one of a three pronged attack
aimed at driving the dissidents out of their twin strong-
holds of Padang and Bukittinggi on the west coast The
other two involve an overland advance southward from
Medan, where government forces have been building up,
and an amphibious assault on the beaches between Painan
and Pariaman.
Government officials continue to be optimistic of
achieving a quick victory. In this connection, the Indo-
nesian army G-2, who participated in the 7 March land-
ing on Benakalis.
the dissidents defenses in the Pakan-
baru area are thinly spread and that their morale is
"rather low." Djakarta is also counting heavily on defec-
tions among the dissidents as well as an thAi r hpig un-
willing to fight; gov-
ernment troops at vaiming are "eating from the same
mess" as the rebel troops.
Dissident leaders, however, continue to make defiant
statements and promise a stiff fight. Lt. CoL Hussein,
for instance, has told his troops that the "time has come
-SE-efiET
11 Mar 58 CENTRAL! INTFI I InFNICP RI II I PTIKI
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for you to prove your loyalty to the revolution and to fight
for our ideals."
In Djakarta, a prominent politician who has served
in a liaison capacity between Padang and the central gov-
ernment in the interest of working out a negotiated settle-
ment says that a substantial part of the attacking forces is
composed of Communist veterans armed by the central
government. He regards this as evidence that Djakarta
has no present intention of compromising with the dissidents.
SEeRET
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Egypt Preparing for Announcement of New
"Palestine" Assembly
A petition signed by 5,000 Palestinian refugees living
in Syria, requesting "the immediate merging of Palestine
with the United Arab Republic," has been presented to UAR
President Nasir, now visiting in Damascus.
the petition
was arranged by the Egyptians in coordination with their
plans for the institution of a "Palestine" legislative coun-
cil in Gaza about� 15 March. Cairo evidently intends this
event to have much greater psychological impact than is
implicit in official assertions that the new Gaza council
will merely implement provisions of an earlier law.
The effort to associate Arab refugees with an Egyptian-
sponsored "Palestine" probably is designed to stir up un-
rest among the more than half million refugees living in
West Jordan, the sector of the former Palestine mandate
which was annexed by Jordan in 1950. Some 220,000 ref-
ugees are under Egyptian control in Gaza, while roughly
100,000 are in Lebanon and 90,000 in,Syria. To the vast
majority, Nasir is a hero who will ultimately lead an as-
sault on Israel to recover the property abandoned by the
refugees during the 1948 Arab-Israeli war.
Within Israel itself, a "national liberation movement"
meanwhile may be initiated by Arab Communists who, with
probable Soviet backing, have split with the Jewish leader-
ship of the Israeli Communist party and are attempting to
win support of Israel's nearly 200,000 Arabs. This develop-
ment complements the Egyptian move and probably will
excite the refugees into the belief that further steps against
Israel may be imminent.
SECRET
11 Mar 58 CENTRAL INTELLIGENCE BULLETIN Page 4
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'toy
New Delhi
CHINA
INDIA
11 MARCH 1958
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11.A..� A
India May Accept Soviet Offer to Finance Oil Refinery
The Indian Government may accept a Soviet offer to
finance one of the two state-owned oil refineries planned
in eastern India. The leader of the Soviet parliamentary
delegation now touring India stated on 8 March that the
USSR was considering assistance for the project. Soviet
interest probably centers on the refinery planned for Bihar
State, since the Rumanians have offered to construct the
refinery planned at Gauhati in Assam.
The two refineries are to have a combined capacity
of 50-60,000 barrels a day, with the refinery in Bihar
accounting for about three fourths of total output. The
total cost of the refineries will be approximately $70, -
on000, about half in foreign exchange.
The Indian Government has requested financial as-
sistance for the Bihar refinery from Western oil compa-
nies, which own the four existing refineries in India; but
they have apparently decided not to participate. The
niinister of mines and fuel informed the US Embassy
in New Delhi on 7 February that India had approached
West Germany and France as well as the USSR for as-
sistance, and requested the United States to consider
7. Ong the project.
SECRET
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Jordan-Syria Economic Warfare Looms
A dispute over the movement of Jordanian trucks in
Syria may lead to economic warfare between Jordan and
Syria, and possibly their respective Arab groupings.
King Husayn plans to act in concert with Iraq, possibly
by the last week in March, to prevent Syrian trucks from
entering Jordan and Iraq--thereby cutting lucrative Syrian
trade with Kuwait and Saudi Arabia in addition to direct
trade with Jordan and Iraq.
Iraqi cooperation is essential to the success of the
move since otherwise Syrian trucks could -bypass Jordan.
King Husayn asserts that Iraq has agreed to provide al-
ternate sources of supply for Jordan, more than 80 per-
cent of whose trade normally passes through Syria by
truck, and that Iraq is prepared to supply Jordan with
fuel by truck below present prices.
The current crisis stems from Syrian action last fall
prohibiting Jordanian trucks from picking up cargoes in
Syria. Attempts to settle the dispute collapsed toward the
end of February, whereupon Syrian customs officials be-
gan sealing empty Jordanian phosphate trucks returning
from Beirut to prevent their picking up goods in Syria.
On 3 March the Jordanian cabinet authorized reprisals,
and next day approximately 800 Syrian vehicles were held
up at the Jordanian border. Syria then agreed to resume
negotiations, and normal truck traffic was temporarily
restored.
Jordan's effort earlier last year to develop the Gulf of
Aqaba route to supplement the road through Syria was largely
unsuccessful. King Husaynt, proposed action is likely to in-
vite a new round of reprisals from Syria and also probably
from Egypt. The Jordanian Government is also imposing
new restrictions on the numerous resident Syrian merchants.
Jordan apparently believes that Syria would suffer most
from such action, and sees an opportunity to develop new
Iraqi sources of supply.
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CENTRAL INTELLIGENCE BULLETIN
11 MARCH 1958
DAILY BRIEF
L THE COMMUNIST B
Communist China - Vietnam: Pe
ment of Hanoi's proposals for early
on bilateral troop reductions and tr
Intended to demonstrate bloc initia
tiated settlement of Asian issues,
ing this latest gesture to other r
for East-West talks and to its o
draw Chinese troops from Kor
move, like the 8 March Pravd
probably timed to achieve ma
current SEATO meeting in
(Page 1)
ping's endorse-
orth-So4th talks
de in Vietnam is
ye for a nego-
Peiping is relat-
ent bloc proposals
n decision to with-
The Hanoi-Peiping
attack on SEATO, was
mum impact on the
ila.
IL AA-AFRICA
*Saudi Arabia: All leaves of Saudi military personnel, in
both the army and auxiliary forces, have been canceled, pre-
sumably from fear of E ired action against the
Icing. Cairo has made extra;.'
ordinary eitorts to evacuate its sers., . - . 'a - .ia
by the 11 March deadline,
Nasir may aCePnt Rau o r o mee m personally.
me .zgyptian government-controlled news agency, how-
ever, is disseminating a statement by a Lebanese opposi-
tion leader that "it would not be strange for the world to
see an uprising from the heart of Saudi Arabia," led by
Princes "whn hni 1 with liberated Arab nationalism."
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