CENTRAL INTELLIGENCE BULLETIN - 1958/07/05

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03169491
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 14
• Document Creation Date: January 27, 2020
• Document Release Date: January 30, 2020
• Publication Date: July 5, 1958

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3.5(c)
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5 July 1958
Copy No.
CENTRAL
INTELLIGENCE
BULLETIN
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5 IULY 1958
I. THE COMMUNIST BLOC
Peiping repeats charge US is stalling
resumption of ambassadorial talks. 0
IL ASIA-AFRICA
Lebanese government seeking mili-
tary pact with Iraq; Druze theatIo
Beirut temporarily averted.
Persian Gulf - Saudi Arabia apparent-
ly has resumed covert support of Inner
Oman rebels.
India - Nehru deplores Nagy execution
In his sharpest criticism to date of
bloc.
Indonesians charge Dutch reinforce-
ment of New Guinea garrison is de-
signed to disrupt US-Indonesian rela-
tions.
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IIL THE WEST
� Canadian cabinet is reviewing policy on
recognition of Peiping; early change is
not likely:
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CENTRAL INTELLIGENCE BULLETIN
5 July 1958
DAILY BRIEF
I. THE COMMUNIST BLOC
Communist China: Peiping insists that the US cannot
"evade" the 15-day time limit set by the Chinese Commu-
nists in their note of 30 June demanding resumption of
Sib-American ambassadorial talks. The Chinese have
been careful, however, to avoid outright rejection of Amer-
ican suagestinns of willingness to resume the talks at War-
saw. (Page 1)
II. ASIA-AFRICA
*Lebanon: Government leaders, faced with what they
fear is a diminishing prospect of UN assistance against the
UAR-supported rebellion, are seeking a military agreement
with Iraq.
The Druze threat to Beirut appears to have been averted
for the moment. Cairo radio, meanwhile, declared on 4 July
that rebel leaders would announce "important resolutions" on
the Lebanese situation "very soon."
(Page 2).
Watch Committee conclusion--Middle East: No political
or military solution to the Lebanese crisis is in sight. There
are some indications that the covert intervention by the UAR may
diminish. Rebel military activity has been opposed by somewhat
.stronger army actions than previously. If current political ef-
forts fail to achieve an acceptable solution and fighting intensifies,
Chamoun will probably call for more extensive UN assistance
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A
Is
or may request intervention by Western or friendly neigh-
boring governments under the provisions of Article 51 of the
UN Charter.
There is no evidence of Soviet bloc, UAR, or Israeli in-
tention to intervene with regular military forces.
Elsewhere in the Middle East a deliberate initiation of
hostilities is unlikely: however, serious incidents may 7ccur.
The Watch Committee di:( not issue a separate conclusion
on North Africa.
Persian Gulf: There are indications that a consignment
a arms from Saudi Arabia, destined for the rebels in Inner
Omam, recently reached the Sultanate of Muscat arid Oman
by sea. Other similar consignments may follow shortly.
(Page 4) (Map)
India: Prime Minister Nehru and his principal deputy in
publiC-Ftitements on 2 and 3 July deplored the execution of
former Hungarian Premier Nagy in the strongest terms they
have yet applied to bloc affairs. Nehru's "shocked" reaction
reflects the disappointment of his hopes that recent trends
toward liberalization within the bloc would lead to a reduction
of cold war tensions. (Page 5)
Indonesia: Army chief Nasution's personal spokesman be-
lieves announcement of Dutch plans to reinforce the garrison in
West New Guinea is aimed at exacerbating US-Indonesian rela-
tions. Raising the West New Guinea issue at this time, he said,
would force anti-Communist Indonesian elements to join the
Communists n opposing the Dutch move.
(Page 6)
Watch Committee conclusion- Incitinesia: Soviet bloc aid
to Indonesia continues; however, there are no developments
indicating a Sib-Soviet bloc intention to become directly in-
volved in military operations in Indonesia. The situation
5 July 58
DAILY BRIEF ii
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continues to favor local Communist and Sino-Soviet bloc ex-
ploitation.
III. THE WEST
Canada: The cabinet is reviewing its policy of nonrecog-
nition of Communist China. Although an early reversal is not
likely, the Conservative government is under some pressure
from commercial interests which are increasingly enthusiastic
about trade prospects with the Chinese Communists.
(Page 7)
IV. SIGNIFICANT INTELLIGENCE
REPORTS AND ESTIMATES
(Available during the preceding week)
National Intelligence Estimate No. 75-58. Conditions and
trends in French Tropical Africa. 17 June 1958.
5 July 58
DAILY BRIEF iiL
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I. THE COMMUNIST BLOC
Peiping Demands "Explicit" US Reply to Call For Ambas-
sadorial Talks
Peiping insists that the US cannot "evade" the 15-day
time limit set by the Chinese Communists in their note of
30 lune demanding resumption of Sino-American ambas-
sadorial talks. The Chinese have been careful, however,
to avoid outright rejection of American suggestions of will-
ingness to resume the talks at Warsaw.
Peiping asserts it will press this issue in order to get
"explicit" acceptance or rejection of its demand. If the talks
are resumed, Peiping will probably use them in new efforts to
win greater concessions, chiefly a foreign ministers' meetiqg
on Sino-American issurs and economic and cultural exchanges.
Peiping may be counting on current concern for American
captives abroad to increase pressure on Washington for a re-
sumption of the talks. In speaking of the four Americans still
in Chinese jails, the authoritative People's Daily on 3 July de-
clared "there can be no question of their returning home be-
fore their terms are up"--ranging from 15 years to life.
It is conceivable, however, that Peiping now may be un-
willing to resutue the talks, and that its propaganda is con-
cerned chiefly with placing the onus for their suspension on
the US. The American consul general in Hong Kong suggests
the Chinese may have decided to break off the talks, perhaps
because they showed scant sign of being productive for Peiping;
or possibly because continued ambassadorial contacts would
make it difficult to introduce Sino-American issues at any sum-
mit meeting.
5 July 58
CONFIDENTIAL
CENTRAL INTELLIGENCE BULLETIN
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1 U1 JCL 1
II. ASIA-AFRICA
Situation in Lebanon
Progovernment irregulars, assisted by army ground
troops and aircraft, by 4 July had beaten back a strong rebel
effort by jumblatt's Druzes to seize the high ground near Bei-
rut airport and link up with rebel groups in Beirut. With the
immediate threat southeast of Beirut averted, progovernment
forces clashed with rebels in Beirut and Tripoli in sporadic
fighting.
The government's momentary gains were marred, however,
by reported friction with irregular forces, which have borne
the brunt of the fighting, over accidental shelling of their posi-
tions by army artillery and over the government's unwilling-
ness to support the irregulars with additional arms, ammuni-
tion, and men. Failure of the progovernment forces to exploit
their initial advantage over Jumblatt has apparently permitted
him to regroup his forces. Meanwhile, there are reports of
rebel plans for new attacks in the Biqa Valley. Friction in pro-
government ranks appears fully offset by factional rivalries
among the rebels.
Despite the setback to Jumblatt, there are reports that the
rebels expect imminent favorable developments in Beirut, and
that Moslem "street" elements are fired by the expectation of
"large-scale" army desertions to the rebels after the next pay-
day. It is unclear whether rebel expectations have a valid
basis in fact, or reflect their leaders' attempts to sustain their
morale. Syrian press reports continue to intimate that the reb-
els plan to announce establishment of a rival government, and the
Egyptian home service on 4 July declared that rebel leaders would
announce "important resolutions" on the Lebanese situation
"very soon."
Faced with what they fear are diminishing prospects of UN
assistance against the UAR-supported rebellion, Lebanese Gov-
vernment leaders are seeking broader military assistance from
Iraq.
5 July 58
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The Lebanese Government on 4 July ordered the expul-
sion of six Egyptian officials of the UAR Embassy in Beirut
and an Egypjlian schoolteacher on charges of inciting rebellion
and paying money to foment revolution. Such action, although
long overdue, together with moves toward the Arab Union,
could provoke intensification of UAR pressure on Lebanon.
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