CENTRAL INTELLIGENCE BULLETIN - 1958/01/28

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02066865
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 15
• Document Creation Date: January 27, 2020
• Document Release Date: January 30, 2020
• Publication Date: January 28, 1958

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28 January 1958
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Copy No.
CENTRAL
INTELLIGENCE
BULLETIN
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CENTRAL INTELLIGENCE BULLETIN
25 January 1958
DAILY BRIEF
IL ASIA-AFRICA
The situation in Indonesia remains essentially un-
changed. Reports of intentions to set up a rival govern-
mont in Sumatra persist, but the dissidents are not be-
lieved to havApp-r-o-V-ea fL Release: 20
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28 JANUARY 1958
I. THE COMMUNIST BLOC
Soviet-Ceylonese assistance
agreement to be signed this
week. Opo
II. ASIA-AFRICA
Algerian rebel action expected
in March. op.
Nasir and Quwatli scheduled to
proclaim Egyptian-Syrian union
this week.00.
Indonesia - Masjumi leaders
cooperating with Sumatran
dissidents. Cp.
Turks suspect Arabs were
responsible for Ankara bombings.(.
III. THE WEST
Britain points to summit meeting
after adequate diplomatic preparation.
C>
Cuba - Batista restores constitutional
guarantees in preparation for June
elections.00.
Venezuelan military demands junta
adopt firmer policy against left-wing
elements.00.
Iceland - Opposition Conservative
party makes gains in local elections.
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28 January 1958
CENTRAL INTELLIGENCE BULLETIN
DAILY BRIEF
I. THE COMMUNIST BLOC
Soviet loan to Ceylon: The USSR will provide Cey-
lon with economic and technical assistance worth about
$21,000,000 under long-term loans at 2.5-percent inter-
est. The agreement has been under negotiation for more
than a month and is expected to be signed this week.
(Page 1)
IL ASIA-AFRICA
Algerian rebel activity: In contrast to their optimism
of early January, French officials now profess to fear a
major Algerian rebel military effort during March, includ-
ing attempts to capture several towns. Although the FLN
rebels can be expected to resume guerrilla operations on a
large scale after the winter lull, the French may be exag-
gerating the size of the rebel effort to justify possible mil-
itary action against FLN forces based in Tunisia.
(Page 2)
Syrian-Egyptian union: Syria's President Quwatli is
scheduled to join Nasir in Cairo this week to announce
Syrian-Egyptian union from the rostrum of the Egyptian
Parliament. Nasir insists that Syrian political parties be
abolished in favor of a "national union," which would enable
him to suppress Communists and any elements who might
oppose the union. According to Nasir, Syria's Deputy Pre-
mier Azm, a leading promoter of closer Syrian-Soviet rela-
have no place in the new government.
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Indonesia: The continued movement of leaders of the
Masjumi party to Sumatra may signify the party's inten-
tion to participate actively in the Sumatran dissident move-
ment and to abandon efforts to influence the Indonesian
Government's policies through normal political channels.
These two groups are cooperating in drawing up a slate
of officers to staff the proposed rival Indonesian govern-
ment which the Sumatrans threaten to establish unless the
Djuanda cabinet either resigns or makes substantial polit-
ical and economic concessions.
Ankara bombings: The Turkish National Security
Service is concentrating its investigation of the 27 Janu-
ary bombings of a US Embassy warehouse and an Ankara
bookstore in Arab and particularly Egyptian circles. The
Egyptian military attache, Zakaria el-Adli Iman, is the
prime suspect. Interrogations and investigations are con-
tinuing, but there is as yet no concrete evidence linking
anyone to the bombings.
III. THE WEST
Summit talks - British views: Foreign Secretary Lloyd
has reiterated that the British Government is under strong
pressure to agree to talks with the USSR. He considers a
summit meeting, sometime this summer, to be unavoidable.
The draft British reply to Bulganin's 9 January letter pro-
poses that such a meeting be held, but only after careful
diplomatic preparations. (Page 3)
Cuban political situation: The Cuban Government is ex-
pected to select its presidential candidate this week and its
full restoration of civil rights in 5 of the 6 provinces was
probably designed to provide the appearance of free campaign-
ing for the June elections. Fidel Castro's revolutionary ac-
tivity may now show an increase. (Page 4)
28 Jan 58
DAILY BRIEF ii
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Venezuela: The Venezuelan military is bringing pres-
sure to bear on the new governing junta's policies toward
exiles, leftists, and Communists. Speeches by a top left-
ist party and a top Communist party leader soon after they
arrived in Venezuela on 26 January tend to heighten mil-
itary opposition to the junta's policy of full freedom ofpo-
litical activity and unrestricted return of exiles.
(Page 5)
Iceland: The impressive victory of the opposition
Conservative party in the Icelandic local elections of 26
January is likely to increase the attacks on the national
governing coalition of Progressives, Social Democrats,
and Labor Alliance (Communists). The Conservative gains
were mainly at the expense of the Social Democrats. Al-
though the percentage of the popular vote polled by the Com-
munists in Reykjavik remained unchanged as compared to the
1954 municipal elections, the Communist vote dropped when
compared to their 1956 parliamentary election poll.
(Page 6)
28 Jan 58
DAILY BRIEF
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I. THE COMMUNIST BLOC
USSR Extending Economic Aid and Technical
Assistance to Ceylon
The USSR will provide Ceylon with economic and
technical assistance worth about $21,000,000 under long-
term loans at 2.5-percent interest under an agreement
which probably will be signed this week. The USSR, which
has made economic proposals to Ceylon since 1956, re-
cently has intensified its efforts to assist Ceylon. In late
December it offered to purchase Ceylon's entire surplus
rubber output. It has also offered extensive aid for devel-
opment of the rubber industry.
Other bloc economic efforts in Ceylon during the past
year include a grant of $15,000,000 from Communist China
for the rehabilitation of the rubber industry and a $3,000,-
000 credit from Czechoslovakia for the construction of a
sugar factory. While Ceylon wants Soviet help for its eco-
nomic development program, it apparently hones to continue
to rely chiefly on Western assistance.
CONFIDENTIAL
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IL ASIA-AFRICA
Algerian Rebels Reported Planning Spring Offensive
In contrast to their optimism of early January, French
officials now profess to fear a major Algerian rebel mili-
tary effort during March. French sources in Paris and Al-
giers, including Minister for Algeria Lacoste, claim that the
Algerian rebels are preparing "massive uprisings" during
which they will attempt to seize two or three Algerian towns
and that, in anticipation of such an operation, rebel terrorists
have been ordered to curtail their activities for the present.
The rebels are not believed capable at this time of cap-
turing and holding any urban center of importance, but might
succeed in sharply increasing the incidence of terrorism in
urban areas where it has declined in recent months. Their
military potential, especially armament, is generally con-
ceded to be improving steadily and they may only be awaiting
the arrival of better weather or additional supplies before ex-
panding their activities. Should a spring offensive material-
ize, it might be centered primarily in eastern Algeria and,
more specifically, near the Tunisian frontier. Relatively
large and apparently increasing concentrations of rebels are
reported enjoying safe haven at training and operational bases
just across the border in Tunisia.
French officials in Algiers may be playing up the possi-
bility of a major rebel offensive with a view to justifying a
resumption of the "hot pursuit" of rebels into Tunisia and the
neutralization of rebel bases there.
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III. THE WEST
British Views on Summit Talks
Foreign Secretary Lloyd has reiterated that the British
Government is under strong pressure to agree to talks with
the USSR. He considers a summit meeting, sometime this
summer, to be unavoidable. The draft British reply to Bul-
ganin's 9 January letter proposes that such a meeting be held,
but only after careful diplomatic preparations.
The proposed reply is to be sent to Prime Minister
Macmillan, who arrives in Australia on 28 January, for ap-
proval before being submitted to the North Atlantic Council
for discussion.
The draft makes no mention of a nonaggression pact or
any other subject for negotiation by the heads of government.
In view of the Macmillan government's marked sensitivity to
the pressures of British public opinion on international is-
sues, London may be expected to formulate new proposals for
"unfreezing" the stalemate in Europe. Before leaving on his
Commonwealth trip, Macmillan set up a special study group
on "disengagement in central Europe."
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The Cuban Political Situation
Cuban President Fulgencio Batista's restoration of
constitutional guarantees on 25 January provides an os-
tensibly free climate for the June general elections.
Although civil rights were not fully restored in Oriente
Province, headquarters of Fidel Castro's rebel move-
ment, the right of assembly was granted in order to allow
political rallies.
Both opposition and government parties are expected
to designate presidential candidates at party conventions
this week. The Autentico party, Cuba's oldest opposition
party, has already named its leader, former President Dr.
Ramon Grau San Martin. Although each of the four gov-
ernment parties has offered its own candidate, Batista
will probably make the final choice. The opposition con-
tinues divided and probably will not unite behind one can-..
didate, thus weakening its already poor chances for defeat-
ing the government candidate.
Revolutionary activity is expected to increase with the
restoration of civil rights and the launching of political cam-
paigns. Castro's rebels are planning to expand their opera-
tions into new areas,
The rebels succeeded
on 26 January in rescuing from a local jail two Castro aides,
one of whom had been an important link between Castro and
civic groups before his capture earlier this month.
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28 Jan 58
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Venezuelan Military Opposes Political Program of the
New Regime
The Venezuelan governing junta is under increasing
and seriously conflicting pressures from military and
civilian elements on its policies toward exiles, leftists,
and Communists. A group of officers which met on 26
January, apparently to protest the junta's announced pol-
icy of full freedom of political activity and of permit-
ting all exiles to return, may provoke a violent struggle
if Communist and leftist exiles are not excluded.
The military are believed to be generally hostile not
only to the Venezuelan Communist party (PCV)--estimated
at 9,000 members and, until recently, believed inactive--
but also to the two leftist parties, the Democratic Repub-
lican Union (URD) and Democratic Action (AD). Provoca-
tive speeches by the URD and PCV leaders soon after their
return to Venezuela will probably further arouse military
suspicions toward the junta and civilian groups.
The Patriotic Front, a coalition of the four principal
parties, including the PCV, has demanded the return of
all exiles and legalization of all parties. Moreover, the
leaders of the three non-Communist political parties re-
cently agreed while in exile that the oil concessions granted
by the Perez regime in 1956 and 1957 to US and British oil
companies were illegal and should be revised by the next
elected government. The companies have paid dr agreed to
pay about $700,000,000 in initial exploration or exploitation
taxes for these concessions.
28 Jan Jan 58
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Conservative Party Makes Impressive Gains in
Icelandic Municipal Elections
The large Conservative party, which opposes the gov-
erning coalition of Progressives, Social Democrats, and
Labor Alliance (Communist), was the only party to register
significant gains in the Icelandic municipal elections of 26
January. In Reykjavik, the Conservatives increased their
popular vote from about 50 percent in 1954 to over 57 per-
cent and won ten of the 15 seats on the city council. The
Social Democrats, on the other hand, appear to have suf-
fered serious losses.
The Labor Alliance maintained its position in Reykjavik,
winning approximately 20 percent of the popular vote, and re-
tained its strongholds of Kopavogur, a suburb of Reykjavik,
and Nordfjordur on the east coast. These returns are gen-
erally consistent with the Communists' showing in the elec-
tions of 18 and 19 January in Iceland's largest trade union,
Dagsbrunn, where they retained control by almost as large
a percentage as in 1954, the last year in which they were op-
posed. Although the percentage of popular vote polled by the
Communists in Reykjavik remained unchanged compared with
the previous municipal elections in 1954, it showed a drop from
the percentage polled in the 1956 parliamentary elections.
Since the popularity of the national government was an
issue in the election, the results will increase the attacks on
and strains within the governing coalition. It is not likely to
break up, however, since the three parties have a vested in-
terest in participating in the government.
-Cifehrt-B9EXHAL
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_4P3 VA. AL.eco'.a.a.a. �
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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CENTRAL INTELLIGENCE BULLETIN
28 January 1958
DAILY BRIEF
I. THE COMMUNIST BLOC
Soviet loan to Ceylon: The USSR will provide Cey-
lon with economic and technical assistance worth about
$21,000,000 under long-term loans at 2.5-percent inter-
est. The agreement has been under negotiation for more
than a ninnth and isEF5MPVIP to be signed this week.
Cuban political situation: The Cuban Government is ex-
pected to select its presidential candidate this week and its
full restoration of civil rights in 5 of the 6 provinces was
probably designed to provide the appearance of free campaign-
ing for the June elections. Fidel str&c rcvolutionary ac-
tivity may now show an increase. (Page 4)
Venezuela: The Venezuelan military is bringing pres-
sure to bear on the new governing junta's policies toward
exiles, leftists, and Communists. Speeches by a top left-
ist party and a top Communist party leader soon after they
arrived in Venezuela on 26 January tend to heighten mil-
itary opposition to the junta's policy of full freedom of o-
litical activity and unrestricted return of exiles.
(Page 5)
Iceland: The impressive victory of the opposition
Conservative party in the Icelandic local elections of 26
January is likely to increase the attacks on the national
governing coalition of Progressives, Social Democrats,
and Labor Alliance (Communists). The Conservative gains
were mainly at the expense of the Social Democrats. Al-
though the percentage of the popular vote polled by the Com-
munists in Reykjavik remained unchanged as compared to the
1954 municipal elections, the Communist vote dropped when
compared to their 1956 parliamentary election poll.
(Page 6)
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