CENTRAL INTELLIGENCE BULLETIN - 1959/04/16

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03156036
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 14
• Document Creation Date: February 25, 2020
• Document Release Date: February 27, 2020
• Publication Date: April 16, 1959

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CENTRAL
INTELLIGENCE
BULLETIN
DOCUMENT NO.
(27-
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NEXT RE.:VIEW DATE:
AUTH: FIR 70-2
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16 APRIL 1959
I. THE COMMUNIST BLOC
Ceylon and Communist China dead-
locked in rice-rubber talks.
II. ASIA-AFRICA
Iraq - Pro-Communist officer named
acting Deputy Chief of Staff for Opera-
tions.
Yemen - Imam's departure for medi-
cal treatment in Italy delayed until
at least 18 April; government taking
precautions as instability threatens.
Turkey concerned by Makarios' pont-
r1cni_runv7s in Cyprus.
III. THE WEST
0 European Economic Community's five
major airlines negotiating to form
common airline pool.
0 Panama - Government alleges inva-
sion planned by rebels from Cuba on
18 April; asks US to help intercept
Invaders.
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CENTRAL INTELLIGENCE BULLETIN
16 April 1959
DAILY BRIEF
I. THE COMMUNIST BLOC
Ceylon - Communist China: Ceylon and Communist
China, in meetings at Peiping, are having difficulty reach-
ing agreement on terms for their annual rice-rubber-con-
tract. Burma, a traditional supplier of rice to Ceylon, has
a large surplus this year and could fill Colombo's needs in
the event of a breakdown in Sino- Ceylonese talks. Ceylon
could probably find other markets for the 30,000 tons of rub-
ber per year called for under the second Smo-Ceylonese five-
year barter agreement concluded in 1957.
(Page 1)
Watch Committee conclusion�Berlin: (No s� � �
changes bearing on the possibility of hostilities.)
ASIA-AFRICA
Iraq: A pro-Communist Iraqi Army officer has been
named acting Deputy Chief of Staff for Operations following
the arrest of the officer who previously held that post. The
appointment will serve to consolidate Communist influence in
the army and to facilitate the transfer of non-Communist of-
ficers to unimportant posts.
Yemen: Deputy Foreign Minister al-Amri has stated
that th-e�aTir-. ing Imam of Yemen's departure for U.eatment in
Italy has been delayed until at least 18 April. (Al-Amri be-
lieves the Imam's condition and strong pressure from the
Imam's relatives make his departure almost certain. However,
ambition and rivalry among the relatives add to the possibility
of instability in the absence of the Imam, and maneuvering
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may well be exploited by important tribal and army 1 aders who
oppose Crown Prince Fades succession as Imam. he Yemeni
government, in a further security precaution, reportedly has
distributed rifles to the police and to members of the nuhlir
rpres7ned to be loyal)
(Page 2)
Watch Committee conclusion--Middle East: 6ituations
susceptible of direct exploitation by Sino-Soviet bloc action
which would jeopardize US interests exist in the Middle East,
particularly in Iraq. The situation in the area remains pre-
carious, but a deliberate initiation of large-scale hostilities
is unlikely in the immediate future)
Iraq: The Communists are progressively achieving co
trol in Iraq, although for the present they may prefer not to
move to take power in their own names
Turkey-Greece-Cyprus: The Turkish Government has
advised Athens that it is uneasy over recent actions of Arch-
bishop 1VIakarios which the Turks believe depart from the
"spirit of the London agreement,"
Athens in turn has reiterated earlier re-
quests to its consul general in Nicosia to attempt to exert a
moderating influence on Makarios. While Greece and Turkey
continue to try to avoid controversy over Cyprus, antagonistic
tendencies shown by Greek and Turkish Cypriots;, and Makarios'
recent concessions to EOICA� will increase the difficulty of working
out the details of a viable independent Cyprus government.
(Page 4)
III. THE WEST
European Economic Community: The five major airlines
of the European Economic Community are negotiating the pos-
sible formation of an airlines pool to be known as EUROPAIR.
This would involve the sharing of revenues and expenses as
well as close technical cooperation, joint sales and advertis-
ing, and rationalization of route operations. Another meeting
is expected to take place in he Hague later this month.
(Page 5)
16 Apr 59 DAILY BRIEF
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Panama: tkop Panamanian officials are gravely con-
cerned over a group of rebels reported due to land from Cuba
on 18 April, and want the US to help in intercepting the two
vessels.
Repercussions of an
invasion attempt, even if unsuccessful, could be serious for
the unstable government, which is already troubled by other
small revolutionary outbreaks.) (Page 6)
16 Apr 59
DAILY BRIEF iii
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I. THE COMMUNIST BLOtr'
Sino- Ceylonese Rice-Rubber Negotiations
Sino-Ceylonese rice-rubber negotiations, begun on 4 March,
have not yet been concluded, primarily because of disagreement
on the prices of rice and rubber to be exchanged during 1959 un-
der the two countries' second five-year barter agreement. Con-
tinued delay could result either in a reduction of the amounts of
rice and rubber to be exchanged or possibly in Ceylon's seeking
alternative suppliers and buyers.
Ceylon made its first barter agreement with Communist
China in 1952 to ensure a regular market for its rubber and an
annual rice supply at a time when world supply of rice was low.
When the second pact was negotiated in 1957 the situation had
not improved sufficiently to enable Ceylon to quibble over prices.
At present, however, abundant rice supplies in Asia and in-
creased demand for rubber in Western markets apparently have
convinced some Ceylonese officials that they can afford to drive
a hard bargain. In the likely event that Peiping refuses to pay
Colombo premium rubber prices, the Ceylonese Trade Ministry
may attempt to lower the 30,000-ton annual minimum specified
in the present five-year agreement with Communist China and to
expand private rubber sales in Western markets. The corre-
sponding reduction of rice imports from China could be offset
by imports from Burma, one of Ceylon's principal suppliers.
Burma has an estimated rice surplus of 21200,000 tons Which it
must export relatively soon. Burma's high rice prices had
stalled negotiations with Ceylon for a 1959 rice contract which
would further lessen Col9mbo's reliance on its barter agreement
with Communist China.(Rangoon now reportedly expects Colombo
to buy a substantial amount of rice, however, and may be quot-
ing a price acceptable to Ceylon)
While the Sino-Ceylonese agreement is not an economic
necessity for Ceylon at present, Colombo is unlikely to cancel
it, without receiving assurances that long-term arrangements
can be made elsewhere. Furthermore, Communist China has
granted Ceylon $15,750,000 and loaned it $10,000,000 in economic
aid, and the neutralist Bandaranaike government presumably
does not wish to reduce the possibility of future Chinese Commu-
nist aid offers by appearing indifferent to its economic ties with
Peiping.
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II. ASIA-AFRICA
Deputy Foreign Minister al-Amri has indicated that the
Imam of Yemen's departure to Italy for treatment of the com-
plications of drug addiction will be delayed until about 18 April
because of the problem, of obtaining air transportation,
Al-Amri passed through Ji a on
14 April en route to make arrangements for the Imam's stay in
Italy. Al-Amri said that, although the Imam had appointed his
son, Crown Prince Badr, to a four-man council which would
rule during his absence abroad, a serious schism existed and
there would be a very grave crisis if the Imam should die,
(Before he left Yemen, Al-A,nri said that the Imam's con-
dition and the strong pressure from the Imam's relatives made
it almost certain that the Imam would actually leave the coun-
try The ambition and rivalry among the Imam's relatives add tothe likelihood of instability in the absence of the Imam, and
the maneuvering will probably be exploited by the important
tribal and army leaders who oppose Bath's succession as Imam
if his father should die. ..`rior to the Imam's 'relapse, signs of
new anti-regime activity resulted in distribution of rifles to the
police and to certain members of the public presumed to be
loyal)
The Yemeni army in the southern capital of Taiz is re-
ported displeased because it did not receive the traditional
bonus during the holiday at the end of Ramadan. There are
also indications of disaffection in the garrison in the northern
capital of Sam. :he
army commander in Sana had rejected an order, allegedly sent
by a woman in the Imam's entourage without the Imam's knowledge,
-Ter
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'3y. which troops of the crown prince's bodyguard would have
relieved local army unite. The leaders in Sana and many
areas in northern Yemen oppose the crown prince, and ap-
pear willing to obey only the Imam.
6/hile the Imam has long been addicted to drugs, his
recent serious reaction reportedly resulted from his ability
to obtain excessive quantities from his harem)
Badr, immediately after his return from Cairo
made arrangements to
send two Yemeni officials and Yemen's two principal commer-
cial agents to Moscow "as soon as possible.!' Badr may want
this mission to explore the possibility of additional Soviet ad-
vice and support.
TOP SECRET
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Turkey Protests Makarios' Actions on Cyprus
The Turkish ambassador to Athens has told Konstan-
tinos Tsatsos, the Greek cabinet member responsible for
Cyprus affairs, that Ankara believes Archbishop Makarios
has departed from the spirit of the Greek-Turkish-UK agree-
ments by appointing former EOKA leaders to Provisional rah-
inet posts,
rine iurics nave been shocked by the youthfulness
and extremist background of those selected.
Makarios has also heightened Turkish apprehensions by
his recent press statement denying that the London agreements
provide for geographically separate Turkish municipalities,
thereby greatly reducing the importance of Turkish municipal
authorities. The Turkish ambassador urged Tsatsos to pre-
vail on Makarios and the Greek Cypriots to accept separate
municipalities.
Tsatsos directed the Greek consul geral in
take up this subject with Makarios.
Tsatsos had directed the consul general to attempt to influence
Makarios toward policies which would nriQnit in a more coopera-
tive Turkish attitude.
-Ter SECRET
CENTRAL INTELLIC;FNCT RI II FTIKI
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III. THE WEST
Plans for European Civil Aviation Pool Make Progress
The five major airlines of the European Economic Com-
munity (EEC) are drawing up plans to pool their resources in
a new organization to be known as E'.IROPAIR. Consisting of
Air France, Sabena, KLM, Alitalia, and Lufthansa, EUROPAIR
would involve a combination of ground services, standardization
of aircraft fleets, joint bookings and sales, and consolidation of
services and schedules within the EEC and abroad. Although
short of an outright merger, close Cooperation may extend to
the sharing of revenue and expenses.
(Formation of EUROPAIR is in keeping with the trend to-
war business consolidation within the EEC and could strengthen
the member airlines competitively on the major international
routes, particularly the profitable North Atlantic run. EUROPAIR's
members might also be in a strong position to concert, their de-
mands for additional landing rights in the United States, lack of
which has long been one of their principal grievances)
Allocation of shares between the well-established airlines
like Air France and the relative newcomers like Lufthansa and
Alitalia is reported to be the chief obstacle to an early agree-
ment. KLM president Aler said after the recent meeting in
Rome that while agreement had been reached on many points, a
decision could not be expected for some time, qiLM's increased
interest in the pool may reflect Dutch resentment over Britain's
recent restrictions on that company's landing rights in Singapore)
A fourth meeting of the five a irl in es is qohpallipd for late
April in The Hague.
-09NREEN TIAL
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Panamanian Officials Fear Invasion
/-7
ale unstable Panamanian Government, already disturbed
by a series of scattered small uprisings, fears an invasion
from Cuba on 18 April by opposition forces. Top officials, in-
cluding the chief of the politically powerful national guard, 'evi-
dently fear that a successful landing would encourage further
revolutionary activity by numerous armed opposition groups
and would lead to the fall of the De la Guardia government.
They have asked the United States to intercept the two invas-
ion ships. De la Guardia may also fear that the invasion
would be used as a pretext for a preventive coup. Some lead-
ers of the ruling oligarchy think his lack of forcefulness and
political acumen have weakened their political and economic
control and stimulated revolutionary plotting. They have been
reported to be plannin to replace him by a junta which would
protect their interests
Although there is no confirmation from sources in Cuba
regarding the invasion, it may well be attempted. Ruben
Miro, its leader, expects supporters in Panama City to
cause "trouble" on 17 April and has asked former President
Arnulfo Arias to assist by creating scattered disturbances
' and cutting telegraph lines in outlying provinces. He claims
to have the support of the guard's second commandant, Saturnino
Flores, who is believed to command great personal loyalty
among the ranks. However, Miro is considered reckless and
unstable and has previously made exaggerated claims of sup-
port. Neither Arias nor Flores is likely to act unless assured
of succes, and Arias would insist on leading any movement
he joined
'The American Embassy in Panama City does not support
President de la Guardia's recent claim that current dissident
activities are Communist inspired. It is possible, however,
that anti-US extremists and Communists would like to take ad-
vantage of the situation to provoke US intervention in Panama
for its great propaganda potential)
SECRET
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AL
ifte
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
CONFIDENTIAfr
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