CURRENT INTELLIGENCE BULLETIN - 1958/01/08

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03015191
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 16
• Document Creation Date: January 27, 2020
• Document Release Date: January 30, 2020
• Publication Date: January 8, 1958

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CURRENT
INTELLIGENCE
BULLETIN
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ALITH: HR (19-1.
DATE/si_
eitf REVIEWER
8 January
Copy No. 143
3.3(h)(2)
3.5(c) 1
1958
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
TOP SECRET
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CONTENTS
1. REPORT OF SOVIET LAUNCHING OF MANNED ROCKET
PROBABLY UNTRUE (page 3).
)1,0 2. PEIPING SHIFTS TO HARSHER POLICY IN TIBET
(page 4).
3. SOVIET SUBMARINE ACTIVITY IN ATLANTIC AREA
DURING AUGUST (page 5).
)te 4. USAF PILOT MAY BE DOWN IN ALBANIA
(page 7).
5. USSR PRESSES INDONESIA TO ACCEPT ARMS AND
ECONOMIC AID age 8).
i)-,72, 6. ARMY AND POLITICAL MODERATES MOVING TO EXPLOIT
SUICARNO'S ABSENCE (page 9).
ctie, 7 . DUTCH WARSHIPS BASED IN SINGAPORE MAY MBARRASS
BRITISH (page 10).
Gt2 8. INTERNAL STRUGGLES IN SYRIA
(page 11).
9. ADENAUER ADVISERS URGE REJECTION OF RAPACKI
PLAN page 12).
10. URUGUAYAN OFFICIALS BLAME US FOR ECONOMIC
PLIGH11 (page 13).
11. PANAMA MAY PRESS CANAL CLAIMS
)age 14).
12. ITALIANS CONCERNED OVER SOVIET AID OFFERS AT
CAIRO CONFERENCE (page 15).
8 Jan 58 Current Intelligence Bulletin
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1. REPORT OF SOVIET LAUNCHING OF MANNED
ROCKET PROBABLY UNTRUE
Comment on:
A spokesman for the
of Science laughed off
the report with the comment that "It
must be based on the Sputnik film."
An official in the State Committee for
Cultural Relations said, "If the report
were true, it would be in the Soviet
press." TASS has denied any knowledge
of such a launching.
The reports may have been based on a
Moscow broadcast on 5 January of a fictional report "from
the not-too-distant future" of the launching of a manned satel-
lite.
The USSR claims to have launched rock-
ets containing dogs to altitudes ranging up to 130 nautical miles,
recovering the animals by parachute. Accomplishing a similar
feat with a man, which would require a larger rocket and more
equipment, is probably within current Soviet capabilities.
8 Jan 58
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2. PEIPING SHIFTS TO HARSHER POLICY IN TIBET
Comment on:
The Chinese Communists are taking
a more aggressive attitude toward
Tibetan officials and plan large-scale
arrests of resistance leaders in Lhasa,
Chang Ching-wu,
Peiping's representative in Tibet, had
"rushed back" to Lhasa from Peiping
in order to settle "many problems."
Last week the Dalai Lama announced
that Chang had brought "important in-
structions" from Chou En-lai.
Tibetan leaders will attempt to prevent
the Dalai Lama's scheduled trip to Peiping later this month,
fearing that he will be kept there and forced to make conces-
sions. If these attempts fail, or if the Chinese begin large-
scale arrests in Lhasa, Tibetan resistance leaders have de-
cided to start a "full-scale uprising" and appeal to the Indians
for support.
Active resistance to Chinese rule has
thus far been confined to eastern Tibet, where harassment of
Chinese Communist work teams and road traffic has been go-
ing on for more than a year. However, potential resistance
groups may by now have moved as far west as Lhasa.
The Indian Government has previously
shown a reluctance to become implicated in efforts to assist
the Tibetan resistance movement, and probably would continue
to refrain from any overt support likely to antagonize Peiping.
Nehru's publicly proposed trip to Tibet and his recent
endorsement of an air connection between India and Lhasa may
have been designed to show tacit support for the traditional
leadership of Tibet.
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3. SOVIET SUBMARINE ACTIVITY IN ATLANTIC AREA
DURING AUGUST
Comment on:
an unprecedented number of sub-
marines were operating in widely di-
verse areas of the Atlantic during
August.
One group, consisting of a minimum of 22 to 26
submarines, was involved in anti-ship exercises in the
Norwegian Sea, while a second group was apparently active
in waters off eastern Canada. In conducting such extensive
operations simultaneously, the Soviet commanders met con-
ditions which they would face in directing an all-out sub-
marine war in the Atlantic.
7 JANUARY 1958
8 Jan 58
APPROXIMATE
AREAS OP OPERATION
ATLANTIC
OCEAN
Current Intelligence Bulletin
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The Norwegian Sea operations involved
submarine "wolfpack" attacks against two simulated enemy
forces. One force was a detachment of light surface forces
moving from Spitzbergen in the direction of Jan Mayen Island.
These light units then joined the cruiser Nevsky and a de-
stroyer returning from the Baltic to Northern Fleet waters to
form the second force. As many as seven "wolfpacks," with
up to seven submarines in each, were noted during one phase
of the exercise. This exercise apparently simulated the de-
fense of the Soviet Northern area against "enemy" aircraft
carrier forces.
The unknown number of submarines active off
eastern Canada may have been involved in exercises simulat-
ing attacks on merchant shipping lanes, Operations in this
area may have accounted for some of the unidentified submarine
contacts of higher validity reported by Canadian authorities.
8 Jan 58
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4. USAF PILOT MAY BE DOWN IN ALBANIA
Comment on:
The Albanian radio announced on
7 January that an American air
force pilot in a jet trainer had vio-
lated Albanian air space and was
forced to land by Albanian fighters.
The aircraft is believed to e one missing since 23 Decem-
ber on a flight in the area.
8 Jan 58
Current Intelligence Bulletin Page 7
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5. USSR PRESSES INDONESIA TO ACCEPT ARMS
AND ECONOMIC AID
Comment on:
The Soviet Union is putting "extreme
pressure" on Indonesia to accept
economic aid, military equipment,
and ships for the present emergency.
Indonesian Premier Djuanda told the American ambassador
in a "friend-to-friend" talk on 7 Lanuary that the early return
to Djakarta of the Soviet ambas ador, who interviewed the
premier on 6 January, was for this purpose. Conditions of
payment need not be arranged until after the arrival of the
equipment, according to Djuanda.
The USSR is able to provide arms on
short notice, and bloc vessels are able to meet Indonesia's
overseas shipping needs.
8 Jan 58
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6. ARMY AND POLITICAL MODERATES MOVING TO
EXPLOIT SUKARNO'S ABSENCE
Both the Indonesian Army and mod-
erate political elements appear to be
moving to take advantage of President
Sukarno's absence from Indonesia to
bring about changes in the government's
policies, if not in the government itself.
Their efforts seem aimed at decreasing
Communist influence and mollifying the
dissident regions. The army has ordered town commanders
to hold large-scale "security exercises" beginning on 9 Janu-
ary which would provide an ideal cover, if needed, for any
governmental changes that are contemplated.
Sukarno had barely departed before
Premier Djuanda called a cabinet meeting, attended by Chief
of Staff Nasution, to consider "trade relations" with the outer
islands. Nasution has also "summoned" a prominent leader
in East Indonesia to Djakarta to report on the local situation.
Former Vice President Hatta and General
Nasution plan to visit Sumatra in the near future. The strongly
anti-Communist governor of the Bank of Indonesia, Sjafruddin,
who has either "resigned" or is on extended "leave" from his
job, is also in Sumatra. Hatta and Sjafruddin undoubtedly will
hold discussions with the dissident colonels and other civilian
leaders who have already met at Padang to discuss activity dur-
ing Sukarno's absence. Nasution also will probably consult with
many of them.
Colonel Simbolon, former commander in
Sumatra and a leader among disaffected elements there, was
quoted on 6 January as having said the Communists had pressed
the Djakarta government into its "reckless" anti-Dutch campaign
and that Indonesia's independence was in jeopardy because of the
regime's leanings toward the Soviet bloc. Simbolon also said that
the non-Javanese areas were not willing to become "playthings of
the Communist-infiltrated central government."
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7. DUTCH WARSHIPS BASED IN SINGAPORE MAY
EMBARRASS BRITISH
Popular resentment against the
British may erupt in Singapore,
Malaya, and Indonesia over the
continued use of Singapore port
facilities by Dutch warships,
particularly if there should be an
incident involving these ships.
Indonesia is preparing to reactivaw
former Dutch shipping which was confiscated and has
been lying idle in Java. if such ships
sailing under Indonesian command are found in interna-
tional waters by Dutch warships, they will be seized and
forced into a Dutch or neutral port.
Both the British governor and the
chief minister in Singapore are watching the situation
closely for adverse public reaction. The British have
economic interests in Indonesia, second to the Dutch in
value, which could be a target of retaliation.
Foreign Minister Subandrio warned
the British ambassador in Djakarta that con-
tinued use by Dutch warships of Singapore facilities "would
benefit neither British interests in Indonesia nor trade in
Singapore." the Singapore
Council of Ministers iad unanimously pro-
tested to the British governor the Dutch use of Singapore
as a base for naval operations.
The Dutch naval attach�elieves the
Netherlands will seek to avoid embarrassing the British.
reluctance to take
any action which might aggravate their "cold war" with Indo-
nesia.
8 Jan 58
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8. INTEl.. L STRUGGLES IN SYRIA
T e �e id-the-scenes struggle in
Syria is sharpening despite the ap-
parent belief of Baath leaders that
a public showdown with local Com-
munists should be delayed temporar-
ily for tactical reasons. The Baathist
press is now attempting to rtray the
Communists as opponents of Arab unity,
a charge equivalent to treason in the
Arab popular mind.
The Egyptian-supported scheme to
oust pro-Communist Chief of Staff
Bizrir has reduced Syrian factions to two groups: one com-
posed of Bizri, pro-Soviet Deputy Prime Minister Azm,
and Assistant Chief of Staff Nafuri; the other consisting of
Baathist leader Akram Hawrani, Army G-1 Mustafa Hamdun,
and Foreign Minister I3itar. Chief of Intelligence Sarraj,
generally regarded as pro-Baath, has not openly sided with
either faction. The Baath is seeking to weaken Bizri by press-
ing for the removal of his brother Salah as commander of the
armed youth groups and organized "Popular Resistance"
forces.
Bitar has made statements suggesting that
the next Baathist move will be toward closer Syrian-Egyptian
unity, resumabl as a counter to Soviet and Communist influ-
ence.
8 Jan 58
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9. ADENAUER ADVISERS URGE REJECTION OF
RAPACKI PLAN
Comment on:
The West German Foreign Ministry
is advising Chancellor Adenauer to
reject Polish Foreign Minister Rapacki's
plan for an atom-free zone in central
Europe. The ministry stresses that no consideration should
be given any European security arrangement except in the con-
text of German unification. The ministry has also formulated
certain questions for Adenauer's use in talks with the Soviet
ambassador concerning control and inspection under the
Rapacki plan.
Bonn has consistently opposed plans for
neutral belts in central Europe, either political or military,
which would tend to confirm the division of Germany. In ad-
dition, Bonn would probably refuse to discuss any plan which
presumes government-level negotiations between East and
West Germany. In public statements, however, Bonn has
shown some interest in such proposals in order not to prejudice
the diplomatic conversations it will propose in its answer to
Bulganin's note. The government is also reluctant to appear
"inflexible" in the face of increasing German public interest
in East-West talks.
8 Jan 58
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N. URUGUAYAN OFFICIALS BLAME US FOR
ECONOMIC PLIGHT
Comment on:
High Uruguayan Government officials
are again becoming resentful of Amer-
ican economic policies and are claiming
that these policies are responsible for
the Soviet bloc
has made several offers of economic
assistance in contrast to what he termed
the "indifference" of the United States, and
expected Uruguay to accept one or more of these offers soon.
Two large American-owned meat-packing
plants which supplied a major part of Uruguay's meat exports
closed recently because government regulations and the lag in
government subsidies had crippled their operations. As has
been the case when government intervention in the economy
crippled other industries, the government is being critipized
for mismanagement, while the Communists blame "American
policy." Facing election in the fall, government officials are
also tending to blame the United States for Uruguay's difficult
economic situation.
American oil, com-
panies have been pressing excessively hard for overdue pay-
ments whereas the Soviet Union had offered oil on
a ten-year credit basis. Uruguayan officials may be making
use of some new or past bloc economic offers or even invent-
ing them to exact favorable consideration from the United States
on loans and tariff policy.
8 Jan 58
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11. PANAMA MAY PRESS CANAL CLAIMS
Comment on:
Popular pressures are again building
up in Panama for a greater financial
return from operations of the Panama
Canal. High Panamanian officials are
discussing a proposal recently made by the vice foreign min-
ister that Panama demand 50 percent of the gross receipts
from the canal, which were approximately $50,000,000 in
1957. Foreign Minister Boyd, who renewed Panamanian
claims to sovereignty in the Canal Zone during the 1956 Suez
crisis, has indicated his approval of the idea and may seek
to use Panama's seat on the UN Security Council to bring it
to world attention.
Moderate President de la Guardia has
called the proposal unrealistic, and his attitude is likely to
deter serious attempts to encroach on the US position in the
Canal Zone in the immediate future. The issue has been ex-
ploited by ambitious Panamanian politicians in the past, how-
ever, and may be used to weaken de la Guardia's influence.
Under the Remon-Eisenhower Treaty
of 1955, the annual payment to Panama for the use of the Ca-
nal Zone was raised to $1,930,000 per year, over 50 percent
of the 1957 net profit of the canal operations. In addition,
Panama receives approximately $25,000,000 through zone sal-
aries to its nationals and canal company and US employee pur-
chases. The United States spends an estimated $50,000,000
annually to defend the zone.
8 Jan 58
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CONFTDENTIA
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12. ITALIANS CONCERNED OVER SOVIET AID OFFERS
AT CAIRO CONFERENCE
Comment on:
An Italian Foreign Ministry study
maintainS that the West has "sadly
underestimated" the impact in Asia
and Africa of the USSR's offers of un-
conditional economic aid to all underdeveloped countries,
made at the Afro-Asian solidarity conference in Cairo.
The ministry believes it would be a grave mistake for the
West to respond now by trying to outbid the Communist of-
fers, and thus fall into the "blackmail game, which was
the aim of the conference organizers." As a result, Italy
has suspended plans for an early presentation to the OEEC
of the Pella Plan to finance Middle East development pro-
grams with repayments due in Marshall Plan aid.
Instead, the ministry proposes creation
of an OEEC working party to investigate ways of neutraliz-
ing Soviet economic penetration of underdeveloped countries.
The ministry study also showed :irritation at the failure of
other Western governments to give full support to the Pella
Plan and complained that the Paris NATO meeting diverted
attention from urgent Middle East problems. '
8 Jan 58
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