CENTRAL INTELLIGENCE BULLETIN - 1959/05/15

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03163333
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 14
• Document Creation Date: February 25, 2020
• Document Release Date: February 27, 2020
• Publication Date: May 15, 1959

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15 MAY 1959
I. THE COMMUNIST BLOC
Soviet bloc economic council meeting
in Albania.
USSR, Czechoslovakia, and Hungary
negotiating reciprocal airline rights
with Iraq.
Soviet diplomat in Tehran indicates
USSR still wants nonaggression pact,
but initiative must come from Iran.
IL ASIA-AFRICA
Cairo seeks means to assure Qasim
the UAR will support him if he moves
against Communists.
Saudi Arabia - King persuaded to
retain Faysal as prime minister.
Iranian Communist exile seeks
Iraqi passport, planning to work
for Shah's overthrow in countries
bordering on Iran.
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Indian economic delegation to Mos-
cow will seek agreement on Soviet
help for India's five-year plans.
Laos - Communist political leaders
under house arrest to prevent com-
munication with defiant Pathet Lao
battalions.
c?) South Korea continues harassment
of japanese fishing boats.
Algerian rebel spokesman hints at
"spectacular" action to dramatize
rebel determination.
TORET
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CENTRAL INTELLIGENCE BULLETIN
15 May 1959
DAILY BRIEF
I. THE COMMUNIST BLOC
USSR - East Europe: The eleventh plenum of the bloc
Council for Mutual Economic Assistance (CEIVIA) opened in
Tirana on 12 May. The USSR delegation is led by A. N.
Kosygin, chairman of the Soviet State Planning Committee.
ffhis session will be concerned with coordinating bloc economi
plans of the member countries for the period 1961-65. Particu-
lar emphasis will be given production of coking coal, ferrous,
and nonferrous metals, and the unification of electrical power
systems. An "exchange of opinions" on a Bulgarian proposal
to create a Sib-Soviet international bank also is on the agenda
Bloc-Iraq: The SoViet bloc is appairently succeeding in its
efforts to obtain civil air rights in Iraq. The USSR, Czechoslovakia,
and Hungary have been negotiating for a route to Baghdad, presuma-
bly via Cairo, Iraqi Airways is reported to be preparing a new
schedule which would include the USSR and East Europe as well
as Asian and African countries now served. Moscow reportedly
has offered to re-equip the Iraqi civil air fleet,
(Page 1)
USSR-Iran: E..'he Soviet charg�n Tehran has intimated
that the USSR is still interested in concluding a Soviet-Iranian
nonaggression pact, but wants Iran to take the initiative, ac-
cording to an Iranian Foreign Ministry official� Prime Minister
Eqbal on 9 May also indicated that Soviet bfficials were maneuver-
ing to have Iran send a deleEation to Moscow".1
(Page 2) �
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II. ASIA-AFRICA
UAR-Iraq: Cairo is seeking to assure Iraqi Prime Minister
Qasim of its support should he move against the Communists.
the UAR charg
in Baghdad to let Qasim know that the UAR has no "personal
enmity" toward him and to suggest as an "additional reassurance"
that Qasim send a personal emissary to Cairo. The initiative in
this development may have come from the Pakistani and possibly
other pro-Western diplomats in Baghdad. There is as yet no in-
dication of Qasirn's reaction. (Page 3)
Saudi-Arabia: g group of Saudi princes has pressured King
Saud into reversing his acceptance of Crown Prince Faysal's res-
ignation, and Faysal has resumed his duties as prime minister.
In yielding once again to the princes, Saud reportedly obtained
assurances that agreement will be reached setting forth clearly
o of authority between himself and FaysaL
(Page 4)
Iran: One of the founders of the Iranian T eL (C,,
manis-tWarty, Reza Rusta, still under death sentence in ab-
sentia for inciting revolution,
travel in countries bordering Iran to work for the overthrow
of the Shah of Iran,
II
Rusta, described as a competent labor
organizer, has spent many years in the USSR and was recently
reported to be in Baghdad. His wife is reputed to be a Soviet
agent. (Page 5)
India-USSR: The high-level Indian economic delegation
which left New Delhi on 14 May for a two-week visit to Moscow
will. seek Soviet aid for India's Third Five-Year Plan (1961-66).
The total foreign exchange cost of the dozen projects India wants
to discuss is $735,000,000. India now is drawing up the third plan,
which is likely to have a foreign exchange gap of at least $5 billion,
and any offers of aid :for particular projects would be of considerable
assistance to Indian officials in formulating the plan.
(Page 6)
15 May 59
DAILY BRIEF
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Laos � rU,'he house arrest of the leaders of the Communist
Neo Lao Hak Zat party apparently is intended to cut communica-
tions between them and the two former dissident Communist bat-
talions which have refused to be integrated with the Laotian Army.
These incidents will be used by the Communist bloc to support
the campaign for the return of the International Control Commisi.cm to To
-
South Korea - Japan: South Korea is continuing its ef-
forts to seize Japanese fishing craft on the high seas. A coast
guard ship on 13 May reported the capture of a Japanese fishing
boat more than 120 miles off the Korean coast in the vicinity
of the "Rhee line." Another ship reported the pursuit of ten
jananpse hnatg in flip SA MP arPa
Algeria: Efhe provisional government of the hard-
pressed Algerian rebels is attempting to induce the US to bring
pressure to bear on France. A rebel spokesman at the UN has
hinted that unless the West can soften the French attitude toward,
the provisional government, the rebels in desperation may take
"spectacular military action"7-I,ossibly even an attempted air
attack on Metropolitan France--to dramatize their determina-
tion to continue the wari
15 May 59
DAILY BRIEF iii
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I. THE COMMUNIST BLOC
Bloc-Iraqi Civil Air Negotiations
The bloc drive to establish civil air links with Iraq appar-
ently has met with success. Baghdad announced on 13 May that
a new air schedule linking Iraq with a number of countries, par-
ticularly those of the Communist bloc, Asia, and Africa, will
soon be put into operation.
The Iraqi Government paved the way for expanding civil air
cooperation with bloc countries when, in late April, it "retired"
the pro-Western director and deputy director of the Iraqi Air-
ways. Major American commercial airlines, faced with continu-
ing harassment of their operations and personnel, have ceased
all but token services to Iraq.
Talks between Soviet Embassy officials and Iraqi officials
over the establishment of an air route were held in Baghdad in
March. The discussions may have included a preliminary Soviet
offer to provide the Iraqi airline with modern Soviet civil air-
craft. Furthermore, in March Iraqi officials reportedly were
studying drafts of proposed civil air agreements which had been
submitted by Czechoslovakia and Hungary. Bloc civil air traffic
to Baghdad probably will be routed via Cairo, by extending the
present bloc flight routes now terminating there.
Increased bloc political and economic activity in the Middle
East since 1955 has included attempts to establish direct air
connections with the Middle East capitals which lie on major air
routes between Europe and Asia. The only routes established
thus far connect Moscow and Prague with Cairo. The Soviet am-
bassador in Beirut again approached the Lebanese Government
on 8 May on the auestion of a Soviet-Lebanese air agreement
reit
15 May 59
CENTRAL INTELLIGENCE BULLETIN Page 1
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USSR Maneuvering to Have Iran Send Delegation to Moscow
The Soviet charg�n Tehran has "clearly intimated" that
the USSR is still interested in concluding a Soviet-Iranian non-
aggression pact but wants Iran to take the initiative, accord-
ing to the under secretary of the Iranian Foreign Ministry.
Prime Minister Eqbal on 9 May stated that the USSR was ma-
neuvering to have Iran send a delegation to Moscow.
Soviet leaders probably believe that the pressure of their
persistent propaganda attacks on the Shah's regime will force
Tehran to resume formal talks.
Moscow has countered Iranian demands that
propaganda attacks on the Shah and his regime cease by insist-
ing that Tehran take "positive action" to make up for the "in-
sult we have suffered:'
While Tehran might be willing to reopen negotiations if as-
sured that Soviet propaganda, both overt and clandestine, would
cease, it would not be willing to make any commitment that
would alienate its Western allies.
TOP#J2RET
15 May 59
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IL ASIA-AFRICA
UAR May Offer Qasim Support Against Communists
Cairo to take steps
to assure Qasim of UAR support in the event the Iraqi premier
moves against the Communists. Cairo acted after its charg�n
Baghdad reported that diplomats there felt Qasim would deal with
the Communists at the "proper time" and that the UAR should re-
assure him on its attitude, to relay
the UAR assurances, including the suggestion that Qasim send a
personal emissary for consultation in Cairo.
It is doubtful that the UAR entertains real hope of a rap-
prochement with Qasim, who will be highly suspicious of the
motivation behind the UAR approach and who has yet to take res-
olute action against the Iraqi Communists, If Qasim decided to
move against the Communists, however, he might be interested
in specific UAR guarantees to refrain from promoting internal
subversion and from using feclayeen and Slammar tribesmen
against the Iraqi Government.
For the past month the UAR has avoided personal criticism
of Qasim and concentrated its attacks on the Communists, appar-
ently with the aim of encouraging a split between the two. Indica-
tions of such a split, reflected by increased 'Communist demands
for participation in government and for resumption of political
party activity in Iraq, have received wide coverage by UAR prop-
aganda organs.
'sTasir, in a talk with Ambassador Hare on 9 May, stated that
he recently had seen a few "hopeful glimmerings" in Iraq. He
claimed he had received "what amounted to a message" from
Qasim through Algerian leader Ferhat Abbas, assuring him that
Qasim wanted to get rid of the Communists but was being hampered
by the LTAR's propaganda campaign. Nasir called attention to the
cessation of attacks on Qasim� and added that the UAR would also
refrain from such activities as commando-type infiltrations from
S3rriag
15 May 59
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Li I
Saudi Princes Compel King Saud to Retain Crown Prince
Faysal as Premier
aing Saud has been compelled by a group of Saudi princes
to reverse his acceptance of Crown Prince Faysal's resignation,
Faysal is said to have re-
sumed his duties as chairman of the Council of Ministers on 12
May. The dispute between the King and the crown prince had
been brewing for several months because of the King's persistent
efforts to undermine his brother and because of the King's inability
to comprehend the need for responsible management of Saudi Gov-
ernment affairs, particularly those concerned with finance. The
specific cause of Faysal's resignation is reported to have been the
King's arrest of a newspaper editor without resort to legal pro-
cedure
Laud was forced to reject the resignation by the same group
of senior princes which forced him to grant broad executive powers
to Faysal in March 1958 as a result of his nearly disastrous foreign
and fiscal policies. Most influential among these are the so-called
"Sudayri princes"--sons of the late King,Abd al-Aziz and women of
the Sudayri family. In yielding to the princes, Saud reportedly ob-
tained assurances that an agreement would be reached defining
clearly the authority to be exercised by himself and FaysaL Until
such agreement is reached, it is uncertain whether Faysal's authori-
ty has been enhanced or whether the way is still
by the Kin g4
SEZRET
15 May 59
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Iranian Tudeh Party Organizer Seeks Base of Operations
In Iraq
Reza Rusta, an exiled leader of the outlawed Iranian Tudeh
(Communist) party, intends to use Iran as a base of operations
while he works to overthrow the Shah,
Ere plans to travel to other coun-
tries bordering Iran and to publish a newspaper, parts of which
would be in Arabic, Kurdish, and Persian. He has asked Iraqi
Kurdish leader Mulla Mustafa Barzani to intercede with Qasim
in an effort to help him acquire Iraqi citizenship and an Iraqi
passport.
Rusta, a founder of the Tudeh party and its leading trade -
union organizer, fled Iran about ten years ago. In May 1949 he
was sentenced to death in absentia by the Tehran Military Court
for inciting revolution, He claims to have organized a peasants'
union as early as 1922 and was organizing Tehran workers in
1927. Rusta was in prison or exile from 1931 to 194.1 on various
charges including espionage. Since he fled Iran, he reportedly
has appeared at Communist party congresses and labor meetings
in Europe. Fifty-seven-year-old Rusta is described as dedicated,
ruthless, and a confirmed Marxist. His wife is reputed to be a
Soviet agent.
Other reports have been received of Tudeh members seen in
Iraq, and the Iranian intelligence agency, Savak, has warned the
Shah that the party is being "rejuvenated" by Soviet propaganda
calling for the overthrow of the regime.
15 May 59 CENTRAL INTELLIGENCE 11111 I FTIN
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Indian Delegation Visiting Moscow to Discuss Additional Soviet
Aid
The Indian delegation which left New Delhi on 14 May
for a two-week visit to Moscow will seek Soviet aid for
India's Third Five-Year Plan (1961-66). The delegation--
which includes the minister of steel, mines, and fuel and
the minister of industry as well as high-level civil servants--
is also planning to discuss projects the USSR has already agreed
to finance, such as pharmaceutical plants and a petroleum re-
finery. The total foreign exchange costs of these projects is
$735,000,000.
India now is drawing up its Third Five-Year Plan,
which is likely to have a foreign-exchange gap of at least
five billion dollars. Therefore, any specific offers of aid
the delegation can obtain from Moscow would be of considerable
assistance to Indian officials in formulating the third plan. The
projects India wants to discuss include expansion of the Bhilai
steel mill being constructed with Soviet aid, construction of
a heavy electrical equipment plant, expansion of Soviet assistance
for India's petroleum exploration program, and the establishment
of a watch-making factory.
Soviet bloc aid provided to India to date totals about
$304400,000--about 10 percent of free-world aid�and will in-
crease by about $80,000,000 if India accepts the pharmaceutical
and refinery offers as it reportedly intends to do.
TIAL)
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15 May 59
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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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