CENTRAL INTELLIGENCE BULLETIN - 1959/10/17

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03029884
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 10
• Document Creation Date: February 25, 2020
• Document Release Date: February 27, 2020
• Publication Date: October 17, 1959

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17 October 1959
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CENTRAL
6 5
INTELLIGENCE
BULLETIN
DOCUMENT NO. el/
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I T OCTOBER 059
L THE COMMUNIST BLOC
Soviet decree calling for increase in
consumer goods will not affect invest-
ment or military programs.
Khrushchev says any Berlin solution
acceptable, except for absorption of
West Berlin by West Germany.
II. ASIA-AFRICA
Iraq--Military Governor Abdi indicates
VAR to be blamed for attempt against
Qasim.
Prince Faysal says Saudi Arabia will
not compromise in dispute with
ARAMCO.
Yemeni Imam's brother en route to
Moscow; may be receptive to a Soviet
aid offer.
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CENTRAL INTELLIGENCE BULLETIN
17 October 1959
DAILY BRIEF
I. THE COMMUNIST BLOC
USSR: The Soviet Government's decree of 15 October call-
ing for a 42-percent increase over 1958 in production of con-
sumer durable goods by the end of 1961 will not affect Soviet
investment or military programs under the Seven-Year Plan
(1959-1965). The Seven-Year Plan appears to be off to a good
start. For the first nine months of this first year industrial
output is claimed to be 12 percent over the corresponding period
last year, while the plan called for a 7.7-percent rise. Without
interfering with the planned goals, the leaders can devote any
part of the overfulfillment to satisfying the popular desire for
a faster rise in the standard of living. (Page 1)
Khrushchev: In an interview in Moscow on 13 October with
Austrian President Schaerf, Khrushchev stated with regard to
Berlin that absorption of West Berlin by West Germany is the
only solution unacceptable to the USSR--any other could be
worked out. He complained that Austria's failure to establish
relations with East Germany does not correspond to its neutral
Ov status. Khrushchev referred to his discussions with President
Eisenhower concerning the danger of "saturation" in military ex-
penditures, but he warned that the West should not count on the
burden of military expenditures as being too great for the Soviet
Union to bear. (Page 2)
to�
II. ASIA-AFRICA
Iraq: A 15 October press interview granted by Military
Governor Abdi appears to indicate that the Iraqi line regarding
the assassination attempt on Qasim will be to charge the UAR
with complicity. Reporting on the progress of investigations
into the incident, Abdi alluded to UAR infiltrators sent into Iraq
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across the Syrian border, and added, in what is believed to be
an unfounded allegation, that the UAR had moved a brigade close
to the Iraqi border ten days prior to the assassination attempt.
Communists and nationalists accuse each other of involvement
in the attempt against Qasim. There are conflicting reports of
the political alignment of the dead assailant found at the scene.
Some allege he was a Communist � others say he was a Baathist.
PA
bauca Arapia. Lrown rrince r aysai toia tne American am-
bassador on 14 October that the Saudi Government would not
make concessions to reach a compromise settlement of its dis-
putes with the Arabian American Oil Company. Faysal stressed
that present conditions differ considerably from what they were
when the company obtained its concession in 1933. He said it
would be better for the company to give the government much
more than 50 percent of the profits--he appears to be thinking
of from 75-80 percent--than to "lose the whole operation."
Yemen-USSR: Prince Abd al-Rahman, Yemeni Foreign Min-
istry director general and younger brother of the Imam, has left
Yemen for an extended tour which will include Moscow. Although
some Yemeni officials have said the Imam intends to curtail bloc
activities in Yemen, the government's need of financial assistance
may make it receptive to a Soviet offer of additional economic aid.
o)/ Abd al-Rahman was in Cairo on 12 October and informed the
Imam that the Soviet charge there had suggested that if the Imam
wishes to keep the services of Soviet experts now in Yemen, whose
term of service ends next month, a new aid program should be
formulated. (Page 3)
17 Oct 59
DAILY BRIEF ii
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I. THE COMMUNIST BLOC
New Soviet Consumer Goods Decree
The Soviet Government issued a decree on 15 October
calling for a 42-percent increase in output of consumer dur-
able goods by the end of 1961 over output in 1958. The de-
cree gives scheduled output increases for 1960 and 1961 for
refrigerators, sewing machines, vacuum cleaners, televi-
sion and radio sets, motorcycles, and a host of similar
products. Automobiles are not included.
The new decree, which apparently programs increases
for most products only slightly above the high rates projected
in the Seven-Year Plan (1959-65), covers only about 5 percent
of Soviet industrial production arid will not affect Soviet invest-
ment or military programs under the plan. The Seven-Year
Plan has started off well. During the first nine months of this
first year, industrial output was reported as 12 percent over
the corresponding period last year, while the annual plan
called for only a 7.7-percent increase. As long as industrial
production keeps ahead of the 8.6-percent average annual in-
crease required to meet the 1965 goal, the leaders can devote
any part of the overfulfillment toward satisfying the population's
desires for a faster rise in the standard of living.
The decree is one of a series, such as those on children's
clothing and furniture, introduced during the past two years to
provide benefits to the consumer at relatively small cost to the
state.
17 Oct 59
CENTRAL INTELLIGENCE BULLETIN Page 1
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Khrushchev Comments to Austrian President on East-West Issues
Khrushchev told Austrian President Schaerf in Moscow on 13
October that any solution of the "West Berlin issue" could be worked
out except absorption of Berlin by West Germany. Turning to the
disarmament question, Khrushchev referred to his discussions with
President Eisenhower of the "saturation" situation in military ex-
penditures,but warned that the West should not count on the burden
of military expenditures' being too great for the Soviet Union to
bear. New arms, he stated, are lbecoming cheaper, although con-
ventional forces continue to be very costly.
In response to Khrushchev's complaint that Austria's failure
to establish relations with East Germany does not correspond to
its neutral status, Schaerf said the relationship with West Germany
was of great importance to Austria, and that. this would suffer if
Austria established ties with East Germany. Khrushchev, when
asked at a news conference on 15 October whether any distinction
could be made between military and political neutrality, replied, "Neu-
trality is neutrality, in all walks of life."
Throughout Schaerf's visit in the USSR the themes of peace and
Austro-Soviet friendship were stressed. Apparently the Austrians
failed to gain Soviet agreement to a further alleviation of their oil
reparations obligations, but Moscow has reiterated its promise to
consider including reparations goods in normal trade exchanges when
reparations deliveries end in 1961.
The joint communique issued on 15 October at the close of the
visit announced that Soviet President Voroshilov will pay a return
visit to Austria, but no date was specified. Khrushchev told his
press conference that last year he had accepted Chancellor Raab's
invitation to visit Austria himself and will do so "as soon as I am
able."
17 Oct 59
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Yemeni Official's Visit to Moscow May Bring New Soviet Aid Offer
Prince Abd al-Rahman, director general of Yemen's Foreign
Ministry and younger brother of the Imam, has left the country on
an extensive tour which will include attendance at the celebrations
of the Soviet October revolution in Moscow as the Imam's repre-
sentative. Abd al-Rahman will probably, receive the same red-
carpet treatment which apparently influenced Crown Prince Badr's
attitude toward the USSR during his own visit to Moscow in 1956.
Yemen is in serious need of financial assistance, and the
USSR may use the occasion of Abd al-Rahman's visit to make an
offer of additional economic aid, despite the general lack of co-
operation from local officials Moscow has faced in carrying out
its present projects in Yemen. Since 1955 the Communist bloc has
extended to Yemen about $30,000:000 in military aid and more than
$4010001000 in economic assistance. Moscow now may agree to in-
crease its aid to projects under way to include local costs--hereto-
fore paid by the Yemeni Government.
if the Imam wants to retain the services of
the Soviet military mission in Yemen,which is scheduled to end its
activities next month, a new military aid program should be formu-
lated.
Although there have been numerous reports that the Imam plans
to curtail the activities of the Communist bloc in Yemen, his gov-
vernment's financial difficulties are likely to make him receptive to
any new Soviet offer. Abd al-Rahman asked for American assist-
ance several days prior to his departure, and later reportedly ex-
pressed his "bitterness" over American "reluctance" to make ges-
tures similar to those being made by the Soviet bloc.
7103CIEET
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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
Director, National Aeronautics and Space Administration
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 Army
Director of Naval Intelligence, Department of Navy
Assistant Chief of Staff, Intelligence, Department of the Air Force
Supreme Allied Commander, Europe
Commander in Chief, Pacific
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
COJJLD.NTIAL
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