CENTRAL INTELLIGENCE BULLETIN - 1958/02/05

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03169388
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 18
• Document Creation Date: January 27, 2020
• Document Release Date: January 30, 2020
• Publication Date: February 5, 1958

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CENTRAL
INTELLIGENCE
BULLETIN
DOZ.UMENT NO.
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5 FEBRUARY 1958
I. THE COMMUNIST BLOC
Soviet central COMmittee may miset
this week
; Khrushchev's agricultural
reorganization possibly on agenda.
USSR offers Jordan aid, seeks
diplomatic relations.
Poland to elaborate on control
procedures for Rapacki plan
Peiping's 1958 investment plan
emphasizes industrial expansion.
LATE ITEM
0
0
Peiping, Rangoon may be near border
agreement.
0
- -
-
II. ASIA - AFRICA
Iraq to withhold recognition
from Egyptian-Syrian union. 0
Israeli troop movements raise
tension on Syrian border. 0
Dissidents plan formal ultimatum
to Sukarno on 5 February, 0
Iran - Persistent popular
dissatisfaction with Shah's personal
rule.
0
Libya alert for reported assassination
attempt against visiting Turkish
President.
III. THE WEST
Peruvian Government facing economic
and political difficulties.
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CENTRAL INTELLIGENCE BULLETIN
5 February 1958
DAILY BRIEF
I; THE COMMUNIST BLOC
CPSU central committee meeting: A plenum of the
party central committee may convene this week in Mos
cow. In a
speech on 22 January, Khrushchev suggested that a pie
num would be convened to discuss his proposal for the
transfer of Soviet agricultural machinery from state-
owned machine tractor stations to the collective farms.
*Soviet offer to Jordan: The USSR may be attempting
a significant expansion of its peaceful coexistence cam-
paign among pro-Western Arabs. According to King
Hussayn, Moscow proposed to Jordan on 30 January
that diplomatic relations be established as soon as pos-
sible. In any case, the USSR is ready to furnish Jordan
with unconditional technical and economic aid in what-
ever amount it requires. Hussayn indicated he will block
any further discussion with the USSR and will warn King
Saud that he may be subject to a similar approach in a
forthcoming visit of the Soviet ambassador in Syria.
(Page 1)
Rapacki plan: Polish Deputy Foreign Minister Winiewicz
has indicated that Poland will soon act with "serious intent
and a minimum propaganda display" to elaborate control
procedures for the Rapacki plan. He claimed that the
Soviet Union has agreed to confine the plan to the four
Central European countries originally named. These
decisions were reached during the recent Moscow talks
between the Soviet and Polish foreign ministers, which
Winiewicz said were called on Polish initiative.
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Communist China: Under the 1958 economic plan pre-
sented to the National People's Congress on 3 February,
the nation's industrial production is to increase 14.6 per-
cent and investment is to jump to record levels. The
plan is heavily oriented toward industry. Budgetary allot-
ments for agriculture are increased 40 percent, and agri-
cultural output is to increase 6 percent, double the annual
rate achieved during the last five years.
(See chart on reverse)
II. ASIA AFRICA
*Arab moves against Egyptian-Syrian union: Iraq intends
to withdraw its ambassadors from Cairo and Damascus and
Withhold recognition, at least for the time being, of the new
Egyptian-Syrian union. King Hussayn of Jordan may follow
the Iraqi move, while at the same time pressing his own
scheme for a confederation of Jordan, Iraq, Lebanon, and
� Saudi Arabia. King Saud is said to have indicated that he
might be able to support this project, despite the opposition
of his advisers4 but only if Iraq withdraws from the Baghdad
Pact. (Page 2)
*Syrian-Israeli border tension: Israeli troop movements
along the Syrian border on the afternoon of 4 February may
be preliminary to a new serious incident. These movements
were preceded by occupation of a portion of the northern
Israeli-Syrian demilitarized zone by Israeli combat engineers,
supported by four armored cars and about 60 border police
equipped with automatic weapons. The Israelis have refused
to obey an order to withdraw by the chairman of the Israeli-
Syrian Mixed Armistice Commission and S ria has cabled
a protest to the UN Security Council. (Page 3)
(Map)
5 Feb 58
DAILY BRIEF ii
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CHINESE COMMUNIST ECONOMIC GOALS
1957 1958
RESULTS TARGETS
STEEL
MILLION METRIC TONS
5.24
6.248
COAL
MILLION METRIC TONS
128.6
150.7
ELECTRIC
POWER
BILLION KW-HR
19
22.5
FOOD
GRAIN
MILLION METRIC TONS
185
196
COTTON
MILLION METRIC TONS
1.64
1.75
5 FEBRUARY 1958
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* Indonesia: Lt. Col. Hussein, the head of the dissident
Banteng Council in Central Sumatra, is planning to call for
a new anti-Communist government in Djakarta on 7 Febru-
ary. If President Sukarno, who is being pressed for a de-
cision by dissident representatives in Japan, refuses to
acquiesce, the dissidents intend to proclaim a rival free
republic of Indonesia within several days afterwards. Su-
karno is likely to hedge any reply to avoid an outright re-
jection and to bid for time. Premier Djuanda has already
offered political leaders in Sumatra a compromise involv-
ing an early return by Sukarno, Djuanda's resignation, and
the appointment of Hatta as premier in an anti-Communist
cabinet. This proposal has been rejected out of fear that
Sukarno would not carry out a promise to appoint Balta.
(Page 4)
Iran: Internal dissatisfaction with the Shah of Iran's de-
termined personal rule persists.
for some time public opinion has been swinging
away from the Shah and the United States, that the Shah's at-
titude toward the USSR is softening, and that there is, there-
fore, danger he will accept large-scale Soviet aid.
(Page 5)
Plot on Turkish President's life: Reports of a plot to as-
sassinate Turkish President Bayar when he arrives in Tripoli
on 5 February have been received. Libyan and other appropri-
ate security authorities have been notified.
III. THE WEST
Peru: The Prado government's second suspension of con-
stitutional guarantees in a five-month period reflects the in-
creasing difficulties which beset its 18-month-old attempt at
democratic rule. The present move, which was prompted by
a police strike for higher pay, indicates the seriousness of
popular discontent over economic conditions.
(Page 6)
5 Feb 58
DAILY BRIEF
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LATE ITEM
*Sino-Burma border dispute: Burma and Communist
China have reached "final" agreement on disputed sectors
of the frontier,
Burmese Ambassador Hla Maung was reported
returning to China sometime this week to prepare an early
joint statement for public release, perhaps when Burmese
Deputy Prime Minister Ba Swe visits Peiping in March.
Peiping has long been unwilling to reach a definitive set-
tlement, and in the past has parried persistent Burmese
efforts to achieve this objective. Any agreement reached
at this time would probably be in general terms only; pro-
tracted negotiations will probably be necessary _before the
frontier is fully and precisely defined.
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5 Feb 58
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I. THE COMMUNIST BLOC
Soviet Offer to Jordan
The USSR may be attempting a significant expansion
of its peaceful coexistence campaign among pro-Western
Arabs. According to Jordan's King Hussayn, Moscow pro-
posed that diplomatic relations be established as soon as
possible, and that in any case, the USSR is ready to fur-
nish unconditional economic and technical assistance in
whatever amount Jordan may require. Hussayn indicated
he will block further discussion on the initiative, which is
contained in an undelivered note from Premier Bulganin.
The Soviet ambassador in Lebanon was refused a visa on
30 January when he asked to deliver the note personally,
but he outlined the contents.
The Soviet ambassador in Syria had requested an
audience with King Saud earlier in January. Hussayn
stated that Saud had granted the ambassador permission
to come to Saudi Arabia and that he would warn Saud about
the possible nature of the approach. A Saudi Foreign Min-
istry official said on 28 January that "messages" from Bul-
ganin had been received from Saudi Embassies in both Cairo
and Beirut.
Moscow may feel that the pro-Western Arab states
have been weakened by the announced Syrian-Egyptian unity
and that they can be won over to normalized relations by
the "showcase" aid agreements concluded with Egypt and
Syria. Pravda said on 22 December that the USSR is ready
to develop economic relations with Lebanon, Saudi Arabia,
Iraq, the Sudan, and other Arab states, declaring that the
Egyptian and Syrian aid agreements exemplify a "completely
new form of relations between a great power and countries
of the East."
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II. ASIA-AFRICA
Iraqi And Jordanian Moves Against Egyptian-Syrian
Union
Iraq has decided to withdraw its ambassadors from
Egypt and Syria and to withhold recognition of the Egyp-
tian-Syrian union for the time being. King Hussayn of
Jordan may follow Tract example. Hussayn is press-
ing his own scheme for meetings with King Saud and
King Faysal of Iraq to discuss confederation as a counter-
weight to Egypt and Syria.
King Saud still appears ,cautious'toward Hussayn's
plans, in part because his advisers are urging him to
favor the Egyptian-Syrian move. Saud is reported to
have told a Jordanian emissary,that any new confedera-
tion must not be vulnerable to the charge that it is a "tool
of the imperialists," and that Iraq therefore would have to
withdraw from the Baghdad Pact before Saudi Arabia could
participate. Hussayn has asked that the United States sup-
port his project, and is particularly anxious that any
British pressure to keep Iraq in the pact should be
countered.
Hussaynia project appears at this time to depend on
so many factors that it seems doubtful any really effec-
tive move will emerge.
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5 Feb 58
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REPORTED ISRAEL TROOP)
MOVEMENTS
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I
NIS
Israeli Troop Movements Along Syrian Frontier
Israeli troop movements on the afternoon of 4 Feb-
ruary opposite the center of the Syrian front have been
reported
These move-
ments were preceded earlier in the day by occupation
of a portion of the northern demilitarized zone along the
border by Israeli combat engineers supported by four
armored cars and about sixty border police equipped
with automatic weapons. A large number of Israeli
officers were previously observed in the area, and wire
is being strung. Israel has refused an ISMAC order to
withdraw, and Syria has cabled a protest to the UN Se-
curity Council.
This latest Israeli effort to assert sovereignty over
the demilitarized zones, following a clash in the same
area on 28 January, may be intended to provoke Syrian
opposition and thus create a pretext for an attack on Syr-
ian military positions. The Israeli troop movements come
at a time when the Syrian Army is also confronted with
internal security problems resulting from union with
Egypt.
SECRET
5 Feb 58 CENTRAL INTELLIGENCE FAULLETiN
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Indonesia
Lt. Col. Hussein, the head of the dissident Ba.nteng
Council in Central Sumatra, has selected 7 February on
which to issue a call for a new anti-Communist government
in Djakarta,
His vacillation in setting a date
has stemmed from fear of possible air attacks by the cen-
tral government.
President Sukarno is being pressed in Japan by dissident
representatives to agree to dissolve the Djuanda cabinet and
to designate former Vice President Hatta as premier. If
Sukarno refuses to accede to dissident demands, a rival free
government is to be formally proclaimed within several days
at Bukittinggi, Central Sumatra. Sukarno has left Tokyo
for a tour of Japan until 11 February.
If the rival government is declared, dissidents in Java
plan to support it by action including sabotage against the
Indonesian Air Force and the Djakarta radio stations. Such
activity could provoke government retaliation.
Premier Djuanda, meanwhile, has sent an offer to Sumatran
political leaders to call Sukarno home on 15 February and to
submit his resignation to Sukarno on 17 February. Djuanda
promised he would try to persuade Sukarno to appoint Hatta
as premier in a new anti-Communist government, allowing
Sukarno's National Council to retain its present name, but be
transformed into a senate-type body. Djuanda's comp:.omise
was rejected by the political leaders, who feared that in the
end Sukarno would appoint a Nationalist Party hack as pre-
mier, maintain the present type cabinet, and continue his un-
constitutional policies. Djuanda's proposal was not discussed
with Sumatran military leaders.
5 Feb 58
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Shah of Iran's Personal Rule Increasing Internal
Dissatisfaction
For some time public opinion in Iran has been swinging
away from the Shah and the United States amid increased
internal dissatisfaction brought about by the Shah's deter-
mined personal rule,
Even patriotic elements in the country are
now unable to express moderate criticism of the Shah's
policy. The Iranian National Information and Security
Agency has "terrorized" all elements with its authority
to make arrests without reason.
there is considerably less freedom in Iran
than under former Premier Mossadeq and that the present
cabinet is powerless. Businessmen feel the necessity of
coming to terms with the corrupt group surrounding the
Shah. the Shah's softening attitude to-
ward the USSR poses a danger of Iran's accepting large-
scale Soviet aid.
While these statements represent the editor's own
views, they confirm other reports in recent months of
mounting frustration and irritation within Iran.
5 Feb 58
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III. THE WEST
Unrest Increases in Peru
The Peruvian Government's suspension of constitu-
tional guarantees on 2 February, for the second time in
five months, was prompted by a police strike for higher
pay, a symptom of serious popular discontent over rising
living costs. The underlying economic deterioration has
been caused by falling prices for mineral exports and re-
duced agricultural production. Expectation that the re-
cent devaluation of the currency will drive prices still
higher has led to increased pressure for wage rises.
The President's move also reflects the increasing
political difficulties which beset Peru's 18-month-old
attempt at democratic government. A small-scale army
plot which was frustrated on 24 January, student rioting
during the same week, and threatened strikes of taxi
drivers and miners indicate increasing popular unrest.
The American army attache in Lima comments that al-
though the previous suspension of guarantees restored
order, there is some doubt that tlje present action will
settle the police difficulties.
CONFIDENTIAL
5 Feb 58 CENTRAL INTELLIGENCE BULLETIN Page 6
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IL...WU 1 VJI. J.A.F.1.41 A .11.471-114
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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
iet:ARDFAV-1477
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CENTRAL INTELLIGENCE BULLETIN
5 February 1958
DAILY BRIEF
acki plan: Polish DeP"Urr TIO7eign- Utntalei tinieWra
as indicated that Poland Will soon act with "serious intent
and a minimum propaganda display" to elaborate control
procedures for the Rapacki plan. He claimed that the
Soviet Union has agreed to confine the plan to the four
Central European countries originally named. These
decisions were reached during the recent Moscow talks
between the Soviet and Polish foreign ministers, which
_winiewicz_s_aid_were_c_allecuarLpauslinitiative.
Communist China: Under the 1958 economic plan pre-
sented to the National People's Congress on 3 February,
the nation's industrial production is to increase 1.4. 6 per-
cent and investment is to jump to record levels. The
plan is heavily oriented toward industry. Budgetary allot-
ments for agriculture are increased 40 percent, and agri-
cultural output is to increase 6 percent, double the annual
rate achieved during the last five years.
Plot on Turkish President's life: Reports of a plot to as-
sassinate Turkish President Bayar when he arrives in Tripoli
on 5 February have been received. Libyan and other appropri-
ate security authorities have been notified.
III. THE WEST
Peru: The Prado government's second suspension of con-
stitutional guarantees in a five-month period reflects the in-
creasing difficulties which beset its 18-month-old attempt at
democratic rule. The present move, which was prompted by
a police strike for higher pay, indicates the seriousness of
popular discontent over economic conditions.
(Page 6)
DAILY BRIEF
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