CENTRAL INTELLIGENCE BULLETIN - 1959/04/20

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03003307
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 12
• Document Creation Date: February 25, 2020
• Document Release Date: February 27, 2020
• Publication Date: April 20, 1959

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20 April 1959
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20 APRIL 1959
I. THE COMMUNIST BLOC
Language of presidium birthday mes-
sage to Khrusgchev reminiscent of
adulation during Stalinist "cult of per-
sonality."
USSR planning to hold bloc foreign min-
isters' conference soon.
Chou En-lai plays down Tibetan situa-
tion and stresses Sino-Indian friendship
In speech to National People's Congress.
II. ASIA-AFRICA
India - Nehru's Congress party appar-
ently losing popular support.
Yemen Crown Prince Badr and Nasir
agree that all foreign missions in
Yemen will be closed with representa-
tion to be conducted through Cairo.
0
III. THE WEST
0 Icelanders aroused over latest fishing
Incident with Britain.
ri) Bolivia - Government apparently
has situation under control fol-
lowing rightist attempt at revolu-
tion.
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CENTRAL INTELLIGENCE BULLETIN
20 April 1959
DAILY BRIEF
I. THE COMMUNIST BLOC
Khrushchev: Praise for Khrushchev in the unprecedented
birthday greeting sent him by the party presidium is reminis-
cent of the adulatory language used to describe Stalin at the
height of the "cult of personality" period. Soviet leaders' 65th
birthdays are not normally noted with party greetings. The
message was signed by all full and candidate members of the
presidium except Ambassador to East Germany Mikhail er-
vukhin1 apparently no longer a member of the presidium
USSR: Moscow is preparing a bloc foreign ministers'
conference in Warsaw, probably in April but certainly before
11 May, according to the Yugoslav Embassy in Moscow. The
�Yugoslays believe the meeting, which may be attended by Com-
munist China, is an expansion of an earlier plan to have the
USSR, East Germany, Poland, and Czechoslovakia meet on the
German problem. The bloc foreign ministers presumably will
reiterate the Soviet position on major European problems with
the aim of strengthening the USSR's hand in the Geneva confer-
ence opening on 11 May.
Communist China: Chou En-lai minimized the Tibetan
situation in his speech to the opening session of the National
People's Congress on 18 April. He claimed that Peiping now
is completely in control of Tibet and stressed the theme of
Sib-Indian friendship. The official summary of the 30,000-
(_, word report suggests Peiping will actively seek to dispel the
0
growing belief that China is the most truculent member of the
bloc and indicates the Chinese Communist regime will continue
its "leap forward" program of rapid economic development and
social reorganization. (Page 1)
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*Bolivia: A rightist revolution broke out briefly in La :Paz
on the morning of 19 April but the government apparently has
the situation under control. The perennially plotting rightists
apparently hoped to take advantage of the deep division within
the governing Nationalist Revolutionary Movement, caused by
President Siles' efforts to carry out economic reforms. Bo-
0 livia's protracted economic crisis is likely to cause further sudv
den violent outbreaks by either rightist or leftist elements.
(Page 4)
20 Apr 59
DAILY BRIEF iii
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I. THE COMMUNIST BLOC
Chou En-lai's Report to the National People's Congress
Premier Chou En-lai's report to the opening session of the
National People's Congress on 18 April indicated that Commu-
nist China will continue its "leap forward" toward economic de-
velopment and social reorganization. According to the official
summary of the 39,000-word report, Chou reiterated Peiping's
ultra-ambitious 195'9 targets for steel-18,000,000 tons, coal
�380,000,000 tons, food grains--525,000,000 tons, and cotton
�5,000,000 tons Although Chou insisted that the 1959 eco-
nomic plan is founded on "practical possibilities," it neverthe-
less is based on extremely high claims for production in 1958
which--at least in the agricultural field--are not credited by
Western observers.
Chou praised the communes as China's best means of speed-
ing up socialist construction and effecting the future transition
from a socialist to a communist society.
On the subject of Tibet, Chou claimed the situation now is
completely under Peiping's control but admitted that mopping-up
operations were continuing in "remote" areas. He played up
Sino-Indian friendship, stating that it should not be allowed to
be weakened by a "handful of Tibet rebels." Chou's report and
the Dalai Lama's indication on the same day that he would not
conduct a public feud with Peiping seem likely to put the Tibet
situation at rest for the time being.
No important new foreign-policy lines were laid down, although
Chou% treatment of Asian-African nations suggests the regime
will actively seek to dispel the growing belief that China is the
most truculent member of the bloc. Chou repeated Peiping's
earlier criticism of the UAR's attack on the Soviet Union and
attacked the "hostile" policy of the Kishi government. He re-
peated--without any sense of urgency�the usual formulation
that Taiwan is Chinese territory which must be "liberated," and
that plots to create "two Chinas" cannot be tolerated.
CONFIDENTIAL
20 Apr 59
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II. ASIA-AFRICA
Indian Congress Party Continues to Lose Popular Support
Prime Minister Nehru's ruling Congress party recently re-
ceived two dramatic illustrations of loss of popular support when
its candidates were repudiated in municipal elections in Madras
and Punjab states. The party lost its majority in Madras city,
the seat of the state government, and in most other large towns
in the state, despite the strong showing it had made in the na-
tional elections of 1957. The major gainer was the Dravidian
Progressive Federation, which won 45 out of 101 seats in Madras
city against the Congress' 37. The federation is a regional south
Indian partytolthe lower classes, which opposes domination of
south India by the "Aryan" north, attacks rule by the Brahmin class,
and resents adoption of Hindi as the national language. The middle
and upper classes in Madras apparently were apathetic toward the
elections. In Punjab state, where the Congress party had also
done well in 1957, it recently won less than a third of 391 seats
at stake in municipal elections.
This trend away from the Congress party at the municipal
level is reflected in other parts of India. Despite strenuous ef-
forts by the party leadership since 1956 to improve organiza-
tional contacts at the grass roots, the party now has lost control
of three of the four largest cities in the country�New Delhi,
Bombay, and Madras--and controls Calcutta by only a bare ma-
jority. Awareness of this problem is shown by the fact that party
president Indira Gandhi has just postponed a trip to Mexico, pre-
viously scheduled for May, and has declined an invitation to Lon-
don in order to tour India on party business. Factionalism and
apathy presumably will be her major targets.
The recent voting trend also indicates that the major achieve-
ments of the Nehru government in economic development are not
being translated into political support. Madras state, for instance,
has the best record of any state in India in implementing its plans
for economic development, and its capable, active Congress party
government had been preparing detailed long-range political and
economic plans for the 1962 elections.
CONFIDENTIAL
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III. THE WEST
Iceland Aroused Over New Fishing-boat Incident With British
The intervention of a British naval vessel on 14 April to
prevent the arrest of a British trawler operating within four
miles of the Icelandic coast has caused greater resentment
than any incident since last September, when Iceland unilat-
erally extended its control over coastal waters for fishing
from fourth twelve miles)
he Communist press and leaders, seeking to capitalize
on the incident for political purposes, have called for a sever-
ance of diplomatic relations with the UK. The Progressives
(agrarians) have joined the Communists in demanding the re-
call of the Icelandic ambassador to Britain. The Conservatives
are demanding that the government introduce the matter for-
mally before the NATO Council. Consequently, Social Demo-
cratic Foreign Minister Gudmundsson is planning to explore
with the Icelandic ambassador to NATO the possibility of invit-
ing NATO Secretary General Spaak to come to Iceland and
review the situation)
With elections mandatory if the constituency-reform bill
pas'us parliament, as is likely, the various political parties
are seeking to make the most out of the situation. The Commu-
nists in particular are seeking to appear as the most vigorous
champions of Iceland's right to extend its territorial waters. The
Conservatives, although they have supported the minority Social
Democratic government in parliament, feel they must also take
an uncompromising line in defense of Iceland's interests. The
Social Democrats, the smallest party in parliament and con-
cerned over their future as a labor party, will consequently be
inclined, p rticularly, in view of the inflamed temper of par-
liament nd the press, also to adopt an equally adamant attitude
toward the British)
61.,'he likelihood of British general elections this year tends
to limit the Macmillan government's maneuverability on this
issue.')
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Rightist Revolutionary Outbreak in Bolivia
A rightist revolution broke out in La Paz on the morning of 19
April, but the government apparently has the situation under control.
The perennially plotting rightists apparently hoped to take advan-
tage of the deep division within the governing Nationalist Revolu-
tionary Movement. The division is caused by President &les'
only partially successful efforts to carry out economic reforms
suggested by the International Monetary Fund (IMF) in order to
secure renewal of the agreement between Bolivia and the IMF
on which US financial aid to Bolivia has been conditioned.
Bolivia's protracted economic crisis is likely to cause fur-
ther sudden violent outbreaks by either rightist or leftist elements.
Symptomatic of the government's economic straits resulting from
the virtual suspension of US aid was the fact that as of 13 April
the administration had paid public employees only 8 percent of the
salaries they have earned since 1 January.
CThe rightists appear to have some strength within the police
and probably within the army. The director of the Bolivian Po-
lice and Carabineros, for example, recently told a group of right-
ist revolutionaries that if they were against the Communists they
could count on him, The
government depend neavuy on irregular torces. kiresiaent Siles
recently said that he thought his cabinet appointment for rural
Indian leader Jose Rojas would keep Rojas and his "5,000 rifles"
allied to him, thus guaranteeing government security. Siles em-
phasized that Rojas' followers plus the 2,000 pro-Siles miners
constituted the largest politically unified force in the country.
Some part of the army and police would also be likely to remain
loyal to Siles. The leftist faction of the MNR which has been op-
posing the government's economic reform measures appears to
have the allegiance of other civilian military elements.
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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 and Civilian Mobilization
Special Assistant for Security Operations Coordination
Board of Consultants on Foreign Intelligence Activities
Special Assistant for Foreign Economic Policy
Executive Secretary, National Security Council
The Treasury Department
The Secretary of the Treasury
The Department of State
The Secretary of State
The Under Secretary of State
The Under Secretary of State for Economic Affairs
The Deputy Under Secretary for Political Affairs
The Deputy Under Secretary for Administration
The Counselor
Director, International Cooperation Administration
The Director of Intelligence and Research
The Department of Defense
The Secretary of Defense
The Deputy Secretary of Defense
Assistant Secretary of Defense for International Security Affairs
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
Director for Intelligence, The Joint Staff
Assistant Chief of Staff for 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
The Department of the Interior
The Secretary of the Interior
The Department of Commerce
The Secretary of Commerce
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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