CENTRAL INTELLIGENCE BULLETIN - 1958/03/12

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03177777
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 12
• Document Creation Date: January 27, 2020
• Document Release Date: January 30, 2020
• Publication Date: March 12, 1958

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12 MARCH 1958
I. THE COMMUNIST BLOC
New Zealand's prime minister says
he will honor pre-election pledge to
recognize Communist China.
II. ASIA-AFRICA
Flurry of troop movements in Arab
states reflects heightened tension in
Near East resulting from recent
developments.
Members of Saudi royal family may
exploit Nasir's charges against Saud
in effort to modify Xing's pro-Western
policy.
Sudan - Pro-Western Prime Minister
Khalil's party wins largest single bloc
of seats in parliamentary elections. 0
SECRET
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III. THE WEST
British foreign secretary believes
United Arab Republic will be serious
threat to Western interests, especially
during next six months. Britain wishes
to discuss with US ways of undermining
the UAR.
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CENTRAL INTELLIGENCE BULLETIN
12 March 1958
DAILY BRIEF
I. THE COMMUNIST BLOC
New Zealand - Communist China: Prime Minister
cThiils,'TTw Zealand, who is attending the SEATO
conference in Manila, has indicated that he is determined
s
to honor a pre-election pledge made last
year to recognize
(Page 1)
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Communist China.
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IL ASIA-AFRICA
Arab-Israeli troop movements: A flurry of troop
movements of undetermined proportions within the Arab
states reflects the heightened tensions 7sulting from rp-
cent political developments in the area.
(Page 2) (Map)
*Saudi Arabia - Egypt: Crown Prince Faysal has
asked the Egyptians for a copy of the documents of the
plot "for his own personal information." Members ..of the
Saudi royal family who are unsympathetic to King Saud's
pro-Western policy may seek to use the Egyptian-
Syrian conspiracy charges against the King to modify this
policy. A military tribunal in Damascus is expected to
take up the case in a few days, thus offering more oc-
casions for anti-Saudi propaganda.
Sudanese elections: Pro-Western Prime Minister
KhalflTs Umma party has won the largest single bloc of
seats, at least 68 out of 173, in the Sudanese Parliament.
In order to obtain a majority, he will have to form a
Tor SECRET
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coalition, as he did previously. The pro-Egypti.in Na-
tional Unionists won 45 seats. The Sudan will continue
to maintain a firm attitude toward Egypt in their border
dispute.
III. THE WEST
Britain - Middle East: British Foreign Secretary
Lloyd believes that the United Arab Republic poses a
serious threat to Western interests throughout the Mid-
dle East, especially during the next six months. In
view of Britain's own limited capabilities for counter-
action, London wishes to discuss with the United States
ways of undermining the ITAR. The Foreign Office
wants to explore whether possibilities exist for chang-
ing the regime in Yemen. Lloyd believes Iraq must be
bolstered promptly by fighter planes and economic aid.
London is also cautiously supporting Baghdad's efforts
to bring Kuwait into the Arab Union of Iraq and Jordan.
(Page 3)
12 Mar 58
DAILY BRIEF ii
-TOP-SECRET
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LATE ITEM
*The Indonesian Situation (Information as of 0600 EST, 12 March)
Central government paratroops captured the aitfield at
the Central Sumatra oil center of Pakanbaru on 12 March
after a heavy bombing,
Dissident defenders have regrouped nearby. The
Caltex manager in Pakanbaru also reported this attack and
stated that additional government forces landed from the sea
at Dumai, an oil port about 50 miles north of Pakanbaru, con-
nected'with Pakanbaru by a very poor road. These forces
"passed by Dumai facilities" of Caltex, presumably en
route to Pakanbaru.
Meanwhile, government authorities in Djakarta claim
a third force has advanced more than half the 100-mile.
distance up the Siak River to Pakanbaru and that an am-
phibious assault on the West coast near Padang will take
place soon. They say they plan to attack the Stanvac oil
center of Rengat on 15 March.
(See 1-nap on reverse page).
TOP SECRET
12 Mar 58
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I. THE COMMUNIST BLOC
New Zealand's Prime Minister Planning to Recognize
Communist China
In two private conversations with Secretary Dulles at
the Manila SEATO conference� Prime Minister Nash of
New Zealand reaffirmed his intention to carry out the for-
eign policy platform of his Labor party favoring recognition
of Communist China. His position has strong support among
the New Zealand public and among Commerce Ministry offi-
cials who are eager to expand wool and dairy exports. New
Zealand External Affairs officials and UK Prime Minister
Macmillan have cautioned Nash against hasty action.
A scheduled meeting with Nehru--for whose neutralism
Nash is described as having a great affinity�after the SEATO
meeting may serve to reinforce Nash's attitude. En route to
New Delhi, he plans to stop in Hong Kong where he may dis -
cuss the possibility of sending a trade representative to Pei-
ping.
An early attempt to change New Zealand's policy toward
China could, however, cause Nash difficulty with Parliament.
His party won control of the government in November elec-
tions with a voting majority of only one.
SECRET
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IL ASIA-AFRICA
Arab-Israeli Military Movements
The growing political struggle between the United
Arab Republic (UAR) and the conservative Arab kings has
been accompanied by new troop movements and military
precautions. Reflecting these tensions, the UAR has con-
tinued precautions instituted prior to the plebiscite on
21 February, and during March has taken additional meas-
ures to increase the readiness of its forces.
Egyptian and particularly Syrian forces continue to be
deployed defensively against Israel. However, the gradual
build-up of Egyptian strength on the Sinai frontier, integra-
tion of Syrian military forces with those of Egypt, and the
prospect of increased UAR pressure on Jordan. create new
military problems for Israel. Cairo's assessment of Israeli
intentions, however,
remains essentially calm, and on 10 March
Cairo advised Damascus that there were no indications of
mobilization in Isra,e1.
Most of Jordan's armored units and about half of the
infantry and artillery units are now reported concentrated
between Amman and the Syrian border. Jordanian and
Iraqi military dispositions may have caused uneasiness in
Syria, where a recall of reservists in Damascus was re-
ported on the night of 9-10 March in preparation for move-
ment of additional units to the S'outh. These movements
were rumored to be toward the Jordanian frontier
A major Iraqi military�
movement is under way to assemble an infantry division and
an armored brigade in the vicinity of Ramadi in preparation
for maneuvers toward the Jordanian and Syrian borders dur-
ing the end of March and early April. All leaves in Saudi
army and auxiliary units have been canceled.
12 Mar 58 CENTRAL INTELLIGENCE BULLETIN Page 2
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III. THE WEST
British Plans to Counter United Arab Republic
Britain wants to discuss with the United States plans
to counter the United Arab Republic by supporting the Arab
Union (AU) of Iraq and Jordan while continuing to explore
the possibility of undermining the UAR, which it considers
a threat to WesternAnterestp, especially during the next' six
months. Foreign Office Deputy Under Secretary Hayter told
the American Embassy in London on his return from a Mid-
dle Eastern tour that public support must be developed to
sustain the Arab Union during this initial period, after which
he anticipates that the UAR may begin to show signs of strain.
Foreign Secretary Lloyd maintains that the urgency of
boosting Iraqi morale requires a crash program of supplying
fighter planes without waiting for the findings of a US survey
mission on Iraq's needs, and also economic aid. On 7 March,
he told Iraqi Prime Minister Nun i Said that Britain was ready
to supply a squadron of Hawker Hunters if the US would finance
them. Lloyd also promised Iraq $1401 000 previously assigned
to other purposes for a major propaganda effort and requested
London to supply radio jamming equipment. Britain is also
prepared to give the AU a "birthday present" of $2, 800,900.,,
In seeking to fulfill Iraqi requests for assistance, London
has shifted its position and suggested to the Ruler of Kuwait
that he discuss with Baghdad Kuwaiti accession to the AU.
British officials nevertheless recognize that Kuwaiti suspi-
cions of Iraq make accession unlikely and hesitate to jeopard-
ize their own tenuous position by exerting pressure.
London also wants to examine with the United States what
possibilities exist for changing the regime in Yemen,. Britain,
which retains its legation in Yemen, is believed to have sup-
ported Prince Hassan as a possible successor to the Imam.
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CENTRAL INTELLIGENCE BULLETIN
12 March 1958
DAILY BRIEF
I. THE COMMUNIST BLOC
New Zealand - Communist chiha: Prime Minister
Waltei'llairOf New Zealand, who is attending the SEATO
conference in Manila, has j41cated that he is determined
to honor a pre-election made last year to recognize
Communist China. (Page 1)
II. ASIA-AFRICA
Arab-Israeli troop movem,ts: A flurry of troop
movements of undetermineSproportions within the Arab
states reflects the heiglpried tensions resulting from re-
cent political develosments in the area.
*age 2) (Map)
*Saudi Arabia - Egypt: Crown Prince Faysal has
asked the Egyptians for a copy of the documents of the
plot "for his own personal information." Member8 of the
Saudi royal family who are unsympathetic to King Saud's
pro-Western policy may seek to use the Egyptian-
Syrian conspiracy charges against the King to modify this
policy. A military tribunal in Damascus is expected to
take up the case in a few days, thus offering more oc-
casions for anti-Saudi propaganda.
Sudanese elections: Pro-Western Prime Minister
Khalil's Umma party has won the largest single bloc of
seats at least 68 out of 1734, in the Sudanese Parliament.
in order to obtain a majority, he will have to form a
coalition, as he did previously. The pro-Egypti_Ln Na-
tional Unionists won 45 seats. The Sudan will continue
to maintain a firm attitude toward Egypt in their border
dispute. Approved for Release: 2019/08/20 C03177777
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