CENTRAL INTELLIGENCE BULLETIN - 1958/01/20

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03015198
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 9
• Document Creation Date: January 27, 2020
• Document Release Date: January 30, 2020
• Publication Date: January 20, 1958

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20 January 1958
Copy No. 137
CENTRAL
INTELLIGENCE
BULLETIN
r MENT NO.
1
NO CHANGE IN CLASS.
I DECLASSIFIED
CLASS. CHANGED TO: TS 02 to b
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Aloe
20 JANUARY 1958
Zhukov may receive new appointment
soon.
USSR maneuvers against Baghdad Pact
meeting.
French intercept Yugoslav freighter
with arms for North Africa.
Declaration of Sumatran independence
postponed.
Venezuelan President moves to
strengthen control.
Guatemalan election results expected
this afternoon.
OTHER ITEMS
Nasir wary of Egyptian-Syrian union.
Finland to join Western economic
groups.
Moscow-Bonn trade talks to be
resumed 80 January.
French army tense over Tunisian
incidents.
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CENTRAL INTELLIGENCE BULLETIN
20 January 1958
DAILY BRIEF
I. THE COMMUNIST BLOC
Yugoslavia's carefully balanced position between East
and West in its foreign relations may be jeopardized by the
French interception off Oran of a Yugoslav freighter carry-
ing 150 tons of arms which the French fear are destined for
North African rebels. While France has not reacted strongly
to previous shipments, in the light of present French sensi-
tivity over North Africa this incident will tend to confirm re-
cent French suspicions that Tito is swinging too far away
from the West.
The Soviet Union is encouraging Syria and Egypt to re-
double their efforts against the Baghdad Pact meeting sched-
uled to begin in Ankara on 27 January. The USSR urges that
pressure be put on Iran and that Lebanon and another Arab
state, presumably Jordan, be warned to stay away from the
meeting.
Marshal Zhukov has not been publicly identified since
his removal from high party and government posts in late
X October. Soviet officials have stated that he would receive
a new military appointment upon completion of 90 days' leave
of absence which is probably about to expire.
II. ASIA-AFRICA
Dissident regional leaders in Indonesia apparently have
decided to postpone the declaration of an independent Suma-
tran state but to continue to demand the formation of a new
anti-Communist cabinet in Djakarta. The decision probably
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resulted from the influence of moderate elements in Suma-
tra, the advice of anti-Communist forces in Djakarta, and
the central government's threats of economic and military
counteraction. Meanwhile the 18 January Sukarno-Tito
joint communique in Belgrade announcing agreement on arms
purchases and increased economic relations will give the
Diakarta government increased encouragement and prestige.
Egyptian President Nasir appears basically wary of
proposals for Syrian-Egyptian union, and seems to be set-
ting difficult conditions in order to dampen Syrian enthusi-
asm for the project. Pressures for union continue to mount,
however, and there almost certainly will be additional pub-
lic announcements that plans for union are being developed.
(Page 1)
III. THE WEST
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Finland plans to join the European Payments Union
within the next few days, and the Organization for European
Economic Cooperation later this year. President Kekkonen
believes Finland's only alternative to such ties is to become
an economic satellite of the Soviet bloc, because of Finland's
increasing internal economic difficulties and the growing drift
of its foreign trade toward the bloc.
(Page 2)
West German-Soviet trade and repatriation talks will
be resumed on 30 January, and are expected to last for two
or three months. Bonn now has reason to believe that the
USSR will shortly release some 75 German missile experts
held in Sukhumi. These Germans probably have not had ac-
cess to current Soviet missile development.
French military reaction in Algiers to the recent Tuni-
sian border incidents is such that civilian officials fear that
even a minor incident could start the French Army across
20 Jan 58
DAILY BRIEF
TOP SECRET
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the frontier "with or without orders from Paris." Premier
Gaillard faces a foreign policy debate in the National Assem-
bly beginning 21 January. He is under heavy pressure from
rightist deputies to break relations with Tunisia9 although the
Foreign Ministry is playing down this possibility. Tunisian
President Bourguiba's 18 January speech to the constituent
assembly was restrained in tone.
The circulation of antigovernment manifestos signed by
prominent Venezuelans and a rumored oil workers' strike
suggest mounting pressure on President Perez, with civil-
ian groups probably attempting to coordinate their efforts
with dissident military groups. Perez, in another effort to
bolster his authority, has dismissed the new chief of the na-
tional security police and has apparently considrecLreeallng
the previous chief, Pedro Estrada, to Caracas.
Firm indications of the outcome of the Guatemalan elec-
tions will probably not be available before the afternoon of
20 January. Meanwhile, there have been no reports of violence.
20 Jan 58
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DAILY BRIEF
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L THE COMMUNIST BLOC
No back-up material.
II. ASIA-AFRICA
Syrian-Egyptian Union
There are conflicting reports of Nasir's immediate
reaction to proposals for Syrian-Egyptian union.
Tasir told the Syrian mil-
itary delegation he opposed union as not being in the interest
of Syria, Egypt, or himself. Nasir allegedly denounced the
political activity of the Syrian Army, Syrian Chief of Staff
Bizri's "flirtation" with the Communists, and Syria's contin-
uing open hostility toward the United States.
In apparent contradiction, the Egyptian charge in Da-
mascus said Nasir has agreed to union provided that the
Syrian Army abstains from politics and Syria's political par-
ties dissolve. The charge said "all Syrians who matter" had
accepted these terms.
Both reports indicate, however, that Nasir is basically
wary, particularly of army factionalism and Communist influ-
ence in Syria. He is using his strong bargaining position both
to check the Syrian haste for union and to bid for more con-
trol over the Syrian situation. Even if Syrian leaders should
give lip service to his terms, they probably would not be able
or willing to carry them out. The pressures Syrian politicians
have generated nevertheless seem strong enough to bring about
further public announcements that plans for union are being
developed.
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III. THE WEST
Finland Ready to Join EPU and OEEC
Finland intends to join the European Payments Union
"in the next few days," and to assign a permanent observer
to the Organization for European Economic Cooperation to
test Soviet reactions preparatory to joining later this year,
according to a source close to President Kekkonen. The
Finns can be expected to assure the USSR that these moves
are taken on purely economic grounds and will not alter
their policy of neutrality between East and West.
The President believes Finland's only alternative to
ties with these organizations is to become an economic
satellite of the USSR; and, in the country's increasingly
difficult economic situation, all political parties but the
Communists concur in this view. During the first nine
months of 1957 approximately 30 percent of Finland's to-
tal trade was with the bloc, compared to approximately 25
percent for a similar period in 1956.
In order to arrest the country's foreign exchange drain
and growing unemployment, Finland devalued its currency
by about 40 percent in September in the hope of stimulating
production and exports, particularly in the important wood-
working industries. Although inflationary pressures have
eased, there is mounting criticism of the budgetary and mon-
etary policies of the caretaker government which many critics
charge threaten the country with a serious recession.
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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
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 Counselor
The Deputy Under-Secretary for Political Affairs
The Deputy Under-Secretary for Economic Affairs
The Deputy Under-Secretary for 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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