CENTRAL INTELLIGENCE BULLETIN - 1959/02/04

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03003303
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February 4, 1959
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Approved for Release: 2020/02/21 C03003303 3.5(c) 3.3(h)(2) 4 February 1959 Copy No. C 63 CENTRAL INTELLIGENCE BULLETIN /DOCUMENT No . ._. . _... NO CHANCiF-: IN CL/V:.;3. "c I , rCLASSiFii'D ..........._ C! .:-.::;5'. C1ANC1.710 TO: IS SA c F; ..�) L;;TREV:EW DATE: la/ ut,,,t2\11/,17 __REVIEWER: -TOP-SECRET Approved for Release: 2020/02/21 C03003303 Aproved foreiea;720-21I/62/21 C03003303 -TG1*-SECLRET Approved for Release: 2020/02/21 C03003303 Approved for Release: 2-0-20/02/21 C03003303 4 FEBRUARY 1959 L THE COMMUNIST BLOC USSR - Ambassador Thompson cites Importance of Mikoyan claim that US aware of shift in balance of power to the bloc. 0 USSR planting contradictory statements on turnover of Berlin access control; latest convoy incident probably premed- itated and an attempt to emphasize West- ern vulnerability. 0 Tito warns uncommitted Asian nations against Moscow and Peiping, IL ASIA-AFRICA Iran at point of breaking off negotia- tions with USSR. Nasir continues activities against Iraqi regime and Arab Communists; Qasim bickering with nro-Comraunist aides. � 3f,, � ( .t nrs: - 1 .1 �Tunisia to claim prospective Algerian oil area. Greece and Turkey to continue efforts to solve Cyprus issues. �India - Election of Nehru's daughter as Congress party president provides no solution for party's problems. Omani rebels dispersed by British and Muscati forces. III. THE WEST Bonn advises UK of its review of re- lations with USSR 03 Cambodia and Thailand agree to re- ELUME_dinlnmatir_reiations. Approved for Release: 2020/02/21 C03003303 dr / Approved for Release: 2020/02/21 C03003303 fi Pd11Iwo CENTRAL INTELLIGENCE BULLETIN (914 1. February 1959 DAILY BRIEF I. THE COMMUNIST BLOC USSR: Ambassador Thompson underlines the importance of Mikoyan's thesis in his speech to the party congress that the improved atmosphere in Soviet-American relations stems from awareness of American leaders and public that the bal- ance of power is shifting to the Soviet bloc. Mikoyan suggests that the United States is becoming reconciled to the status quo, especially in Eastern Europe, and that the US may seek to avoid a showdown on Berlin. USSR-Berlin: Soviet detention of a US truck convoy from Berlin at the checkpoint on the East - West German frontier is the first incident involving Soviet detention of a US military truck convoy since 14 November when one was held near Ber- lin. At that time, US officials in Berlin believed it was a deliberate probe of US reactions. The present incident also appears to be premeditated. It was probably designed to point up the vulnerability of Western access as Secretary Dulles be- gins talks with Western allies on the Berlin and German issues. The USSR has been planting contradictory statements through diplomatic and press channels in an effort to confuse the West concerning the time and circumstances under which access con- trols will be turned over to the East Germans. (Page 3) Yugoslavia:ciito's unprecedented statement to Ceylonese officials that "on Ty American power prevents world domination by Moscow" may have been in reaction to increasingly aggres- sive bloc policies. He displayed considerable apprehension regarding Peiping's efforts among the uncommitted Asian na- tions and warned them against too close relations with Moscowp TOP SECRET z 14 14 Approved for Release: 2020/02/21 C03003303 "Approved for Release: 2020/02/21 C03003303 tD INF 'and Peiping. While Belgrade is likely to become more sym- pathetic to Western positions, it will continue to give full - support only to uncommitted states. IL ASIA-AFRICA *Iran-USSR: ahe Shah and his top advisers, having second thoughts on the benefits of a Soviet-Iranian nonaggression pact, are trying to disengage themselves. Foreign Minister Hekmat, in a reversal of attitude, claims he is "fed up" with Soviet ne- gotiators, is breaking off the negotiations, and is prepared to sign the bilateral agreement with the US immediately. Hekma said he had been commissioned by the Shah to determine how to breakoff negotiations, withthe Soviets and the timing for sig- nature of the bilateral agreement. The Shah earlier had said he would go ahead with the nonaggression pact if the USSR yielded on all points of disagreement!j (Page 4) UAR-Iraq: Nasir's conflict with the Iraqi regime and Com- munist activities in the Arab world continues. Cairo s re- ported ready to undertake a new campaign of arrests of Egyp- tian Communists anithas suggested that the pro-UAR press in Beirut play up a reported clash between Qasim and two of his pro-Communist advisers--his aide, Col. Wasfi Tahir, and the president of Baghdad's "People's, Court," Fadil Mah- dawi. The Baghdad press is replying vigorously to UAR at- tacks on Qasim and his regime, and an Iraqi delegate has used the Moscow party congress as a forum for a thinly diseuised affark nn Nasirls nti-Communist actions. (Page 5) Tunisia: CPresident Bourguiba will probably soon reiterate Tunisia's claim to a part of the Algerian Sahara which, accord- ing to the Tunisian foreign secretary, comprises the greater part of a concession which France last month granted to a cor- poration owned half by French interests and half by Standard Oil of New Jersey. The Tunisian Government does not object to exploitation of the area but expects Standard Oil to "make ar- rangements directly with the rightful owner.' 4 Feb 59 DAILY BRIEF TOP SECRET 11 Approved for Release: 2020/02/21 C03003303 7777 4ApprovTd fo: Release: 2020/012/21 CO3003303 Kee .4400; %me AtAArtAx-Q-14174 Nib J�,4 ,0* Cyprus:G.11e Greek and Turkish foreign ministers are planning to meet again soon in an effort to resolve the re- maining outstanding issues preventing a Cyprus settlement] (Page 8) India: The electionof Indira Gandhi, Nehru's 42-year-old daughter, as Congress party president is unlikely to assure the strong leadership the political organization now needs. Mrs. Gandhi probably will be unable to revitalize and unify the national party. Her socialist views, which some top leaders apparently hope will check the influence of conserva- tive Congress politicians, are likely to accentuate the dif- ferences between the left and right wings of the party. (Page 9) Britain-Muscat:CBritish commando-type units have ap- parently driven the Omani rebels from their mountain strong- hold. As of 29 January, Muscati and British forces were reported in complete control of the rebel territory and the three rebel leaders had fled to Saudi Arabia. This defeat, however, is unlikely to reverse the UAR- supported long-term efforts to undermine the British position on the periphery of the Arabian Peninsula'. ii III. THE WEST West Germany: 6onn's deputy foreign minister, while maintaining that Germany's position on relations with the USSR is basically negative and rigid, has indicated the extent of Bonn's review of these relations. He suggested several possible concessions which Bonn would consider in the event of high-level East-West talks, such as West German establishment of relations wit Poland, eventual recognition of the Oder-Neisse border, a possible "thinning out" of troops, curtailment of certain Western propaganda and intelligence activities in Berlin, and prohibition of nuclear weapons if not applied solely to Germany) (Page 10) 4 Feb 59 DAILY BRIEF iii TOP SECRET Approved for Release: 2020/02/21 C03003303 VA 'Approved for Release: 2020/02/21 C03003303 'two LATE ITEM *Thailand Cambodia: Thailand and Cambodia have agreed to resume diplomatic relations at the ambassadorial level be- inning 20 February, The agreement, to be announced in a joint commu, nique on 6 February, was effected through the good offices of UN mediator Beck-Friis. Cambodian Premier Sihanouk had broken off relations with Thailand last IsITovember out of�pique over anti Cambodian commentary in the Bangkok press. 4 Feb 59 DAILY BRIEF iv TOP SECRET IA Approved for Release: 2020/02/21 C03003303 Approved fc7-rlele-a-e-rZoo-/-0/2-1-003003303 Noir I. THE COMMUNIST BLOC Mikoyan and Gromyko Speeches at Party Congress The foreign-policy speeches by Gromyko and Mikoyan at the 21st party congress carried forward the Soviet leaders' efforts to create a political atmosphere which they believe will bring the Western powers to high-level talks on terms favor- able to the USSR. Moscow appears to believe that if these ef- forts are unsuccessful, such moves as Mikoyan's visit to the United States and pronouncements designed to show the USSR's flexibility and reasonableness will make it difficult for the Western powers to react firmly to a transfer to the East Ger- mans of Soviet controls over Allied access to Berlin. Ambassador Thompson has underlined the importance of Mikoyan's thesis that the improvement in Soviet-American rela- tions reflects awareness of American leaders and public that the balance of power is shifting to the Soviet bloc. The ambas- sador suggests that Mikoyan was trying to-convey the impres- sion that the United States is becoming reconciled to the status quo, especially in Eastern Europe, and may therefore seek to avoid a showdown on Berlin. Mikoyan told the party congress that he had concluded from his talks with American leaders that they now are inclined '''to recognize the principle of peaceful coexistence of countries with different social and political systems." He noted that "in con- trast to earlier times, the US statesmen expressed a readiness to negotiate" and that they no longer talked of a "policy of con- taining, repelling, or liberating." Mikoyan also attempted to cast doubt on the firmness of American policy on Berlin and the German question by stressing an alleged divergence between the American people's desire for an end to the cold war and the policies of their government. Foreign Minister Gromyko's speech provided further evi- dence that Moscow intends to use its moves on Berlin and a German peace treaty to maneuver the West into at least tacit recognition of the status quo in Eastern Europe. His remarks CONFIDENTIAL 4 Feb 59 CENTRAL INTELLIGENCE BULLETIN Page 1 Approved for Release: 2020/02/21 C03003303 Approved for Release: 2020/02/21 C03003303 reflected the Soviet leaders' concern over the growing military power of West Germany and their desire to contain this poten- tial threat to the East German regime before it reaches danger- ous proportions. Gromyko denounced Chancellor Adenauer for rejecting Soviet proposals aimed at easing tension, and charged that West German leaders are seeking to prevent any East-West accommodation until West Germany has built up sufficient military power to "impose its terms" for reunification and a peace treaty. CONFIDENTIAL 4 Feb 59 CENTRAL INTELLIGENCE BULLETIN Page 2 Approved for Release: 2020/02/21 C03003303 Approved for Release: 2020/02/21 C03003303 Noe USSR Detains American Convoy on Berlin Access Route Soviet border guards at the East - West German frontier detained a United States Army truck convoy coming from West Berlin on 2 February after the American personnel accompany- ing the partially covered vehicles refused to permit the Rus- sians to carry out a detailed inspection. Previously the trucks had passed through the Soviet checkpoint at Babelsberg out- side West Berlin with the usual cursory examination. On the same day the same procedure was used on a single British truck which was then passed through apparently after a "satis- factory" inspection was made over the driver's protest. These harassments are probably timed to demonstrate the West's vulnerability to interference on the access routes in order to complicate Secretary Dulles' talks with Allied leaders on the Berlin issue. This is the first incident involv- ing Soviet detention of a US military truck convoy since 14 November, when one was held near Berlin. It represents a further step in the long-range effort to erode the West's posi- tion in Berlin. This move follows Soviet efforts to promote confusion and disunity in the West over the Berlin issue by planting in diplo- matic and press channels reports that are at variance with the Kremlin's public position. The most recent was a statement by a high-ranking Soviet Embassy officer in East Berlin that when the six-month grace period ends, the German Democratic Republic will be given contro over Allied access without re- gard to other developments. CONFIDENTIAL 4 Feb 59 CENTRAL INTELLIGENCE BULLETIN Page 3 Approved for Release: 2020/02/21 C03003303 Approved for Release: 2020/02/21 C03003303 Now IL ASIA-AFRICA Iran Intends to Terminate Treaty Negotiations With USSR Gran intends to break off negotiation of the proposed non- aggression treaty with the USSR, according to Iranian Foreign Minister Hekmat, who has been one of the principal advocates for a reassessment of Iranian foreign policies. Hekmat told Ambassador Wailes on 2 February that he was "fed up" with the Soviet negotiators. He said he has been "studying" the terms of the bilateral agreement pending with the US and now is prepared to sign. He claimed the Shah instructed him to end the negotiations with the USSR and to determine the tim- ing for signature of the US agreement.7 [Negotiations, with the USSR reportedly became snagged on Iranian insistence on remaining in the Baghdad Pact and on canceling articles 5 and 6 of the Soviet-Iranian treaty of 1921. These articles give the USSR the right to advance its troops into Iran to carry out operations "necessary for its de- fense" when menaced by military operations of another country:) Ghe Shah appears to have had some second thoughts on the benefits of a rapprochement with the USSR and to have sought grounds for refusal to sign the treaty should Soviet negotiators agree to all Iranian conditions. The Shah apparently became increasingly concerned over the prospect of adverse interna- tional reaction if Iran signed a nonaggression pact with the USSR. In an audience given to British Minister of Defense Duncan Sandys on 1 February, the Shah gave the impression that he did not expect negotiations with the Soviet Union to be successful, but wished to retain temporarily the threat of agree- ment as a bargaining point with the West.1 SECRET 4 Feb 59 CENTRAL INTELLIGENCE BULLETIN Page 4 Approved for Release: 2020/02/21 C03003303 Approve-CI To-r-Rete-;s;:-26-2-6/02/21 C03003303 Nigre' Nasir's Anti-Communist Campaign Nasir's conflict with the Qasim regime in Iraq and with Communist activity in the Arab world continues. The Cairo and Damascus press and the UAR-supported newspapers in Beirut are carrying on a violent campaign against the Com- munists and are complaining that Moscow is infringing on Arab neutrality. In his opening address at Cairo's Afro-Asian Youth Conference on 2 February, Nasir inserted a few pointed remarks on the "noninterference" principle of the Bandung na- tions, interpreted as indirect disapproval of the USSR's sup- port of Arab Communists. CIn addition, Nasir is reported readying a new list of 100-150 Egyptian Communists to be arrested later this month. The list is said to include some leading party members who were missed earlier this year: The UAR is also apparently engaged in a clandestine ef- fort within the USSR to obtain information on Moscow's support of Iracti and Syrian Communists. Cairo to make arrangements for contacting "the Russian officer" in this connection. pamascus suspects the Communists of attempting to influence or perhaps bribe the head of the Syrian Deuxieme Bureau. a "violent clash" had occurred between Qasim and two of his most influential pro-Communist advisers--his aide, Col. Wasfi Tahir, and the president of the Baghdad Peo- ple's Court, Col. Fadhil Mandawi. Qasim2 who was reportedly "very much on edge," complained of Mandawi's extremist be- havior during the prosecutions. Cairo has suggested that pro- UAR papers in Beirut play up differences within the regime. Mahclawi lashed out with another blast against the UAR on 2 February. The predominantly leftist Baghdad press joined the chorus with attacks on the UAR's suppression of the Syrians, 4 Feb 59 ET CENTRAL INTELLIQENCE BULLETIN Page 5 Approved for Release: 2020/02/21 C03003303 Approved for Release: 2020/02/21 C03003303 -rap" Nue 1. e. the Syrian Communist party. Meanwhile, an Iraqi del- egate used the Soviet 21st party congress as a forum for a barely disguised attack on the UAt's opposition to the Arab Communists. �7`014-SEeRE-1" 4 Feb 59 CENTRAL INTELLIGENCE BULLETIN Page 6 Approved for Release: 2020/02/21 C03003303 Approved for Release: 2020/02/21 C03003303 ihNi4 Colomb Bechar A LG ER I A �In Salah Algiers Rhardaiao Bmnie Philippeville HASSI MESSAOUD ...0' Tunis (TUNISIA Biskra l -(r ' Gabes. .� i �. I�Zuara 1 Touggour)10 3ir Rompe to ' / ...,...; Tripoli SONJ - FRENCH CONCESSION I� TIGUENTOURINE* EDJELE ) CLAIMED BY TUNISIA Gadarnes LIBYA Approved for Release: 2020/02/21 C03003303 Approved for Release: 20i20/01 C03003303 *roe Tunisia to Demand Revision of Western Boundary goresident Bourguiba has outlined to a New York Times correspondent Tunisia's claim to some 69000 square miles of the Algerian Sahara. The area involved, according to Tunisian Foreign Secretary Mokaddem, comprises the greater part of a concession which France granted last month to a French- American corporation in which Standard Oil of New Jersey has 50 percent participation. The Tunisians insist that the pres- ent border is a provisional boundary fixed by French officers and that the line should be drawn due south from Bir Romane to an east-west line just south of Gadames-3 CMokaddem on 28 January showed Ambassador Jones a pur- ported map of all oil concessions granted in Algeria. He stated that the Tunisian Government makes the "most solemn and ex- press reservations" regarding the Standard Oil concession which overlaps the disputed area, but added that there would be no ob- jections to exploitation of the area if Standard Oil makes arrange- ments with the Tunisian Government CThe Tunisians expect to make an early demarche to the French and possibly also the Algerian rebel provisional gov- ernment. Such a demarche or an announcement of this claim by Bourguiba is certain to irritate Tunisia's already difficult relations with France. It may lead to further difficulties with the Algerian rebels, who resist Morocco's territorial claims in western Algeria. The Algerians reacted sharply last July when Bourguiba granted a concession for the pipeline linking the Edjele oil field in eastern Algeria: to the Mediterranean to transit Tunisia. They will, however, welcome any legal dif- ficulties which Tunisia can interject into the exploitation of this concession.73 CONFIDENTIAL 4 Feb 59 CENTRAL INTELLIGENCE BULLETIN Page 7 Approved for Release: 2020/02/21 C03003303 Approved for Release: 2020/02/21 C03003303 Niro Cyprus dhe Greek and Turkish foreign ministers are planning to meet again this week, probably in Zurich, in an effort to resolve the remaining issues preventing a Cyprus settle- ment] Creek Foreign Minister Averoff predicts negotiations will be concluded within two weeks, but he has repeatedly stated his conviction that the British Government will attempt to sabotage an eventual agreement. London, however, by post- poning the scheduled publication of a controversial electoral law for Cyprus, has given evidence of its intention to place no obstacles in the way of negotiations. While areas of dis- agreement between Athens and Ankara could still prevent a solution, many of the barriers to a settlement have been re- moved. The major remaining problem appears to involve Turkey's insistence that the proposed independent Cyprus be precluded from joining the UN.3 CAveroff claimsthatArchbiMop Makarios has been con- tinually informed about the negotiations and is in agreement with the Greek Government's position:3 If the foreign ministers' conference is successful, Athens is expected to agree to the Turkish suggestion that the two prime ministers join the conference before announcement of a final agreement.') Cyprus, there has been no resurgence of violence despite warnings by Greek Cypriots that the recent British security operations would provoke an EOKA response. The operations have now been concluded and new releases f ical detainees have further improved the atmosphere. 4 Feb 59 SECRET CENTRAL INTELLIGENCE BULLETIN Page 8 Approved for Release: 2020/02/21 C03003303 Approved for Release: 2020/02/21 C03003303 Negri Neve Nehru's Daughter Elected President of Indian Congress Party The election on 2 February of Prime Minister Nehru's 42- year-old daughter Indira Gandhi as president of the Congress party is unlikely to assure India's ruling political organization of the strong leadership it needs. The party lacks discipline and vitality at a time when implementation of India's develop- ment program and increasing competition from the Communist party demand its utmost effort. Mrs. Gandhi, wife of Parliament member Firoze Gandhi, apparently was supported by the Congress high command as well as by many regional party units. However, her election probably resulted less from enthusiasm for Mrs. Gandhi than from fear of displeasing Nehru and from lack of an alternative choice acceptable to all sections of the party. A few top lead- ers apparently did oppose her selection. Mrs. Gandhi has been actively associated with the "ginger group" in the party, which has been working, probably with Nehru's blessing, to revive the party's socialist ideology. The high command's somewhat surprising decision has the dual pur- pose of injecting "young blood" into the party leadership and checking the "drift toward a rightist trend of thought." The naming of Indira Gandhi, however, could well have the opposite effect. She lacks both the experience and the po- litical leadership necessary for such a big job. Old-line Congress bosses at the head of various regional party ma- chines are not likely to be brought into line easily by Mrs. Gandhi, active in the high command only during the past few years, despite her unique position as Nehru's closest confidant. In addition, her identification with the party's left wing may alienate the more conservative elements and increase the pos- sibility of an eventual party split. 4 Feb 59 CENTRAL INTELLIGENCE BULLETIN Page 9 Approved for Release: 2020/02/21 C03003303 Approved for Release:. -2-00/02/21 C03003303 Nip" Noare III. THE WEST .13-oien Suggests Possible Concessions in East-West Negotiations CWest Germany's State Secretary for Foreign Affairs van Scherpenberg on 2 February suggested several possible concessions which Bonn would consider in the event high-level East-West talks are held. He mentioned establishment of diplomatic relations with Poland and recognition of the Oder-Neisse line, some thinning out of troops, or a prohibition of nuclear weapons if not directed solely against Germany;5 tI even the revised Rapacki Plan is unacceptable. Bonn also rejects any proposal for a German confederation, which van Scherpen- berg characterized as the "road to communization of all Ger- many." Van Scherpenberg also informed Lloyd that some moves might be taken to make West Berlin less "provocative," such as reduction of propaganda ratliobroadcasts, for example those of RIAS, and certain Western intelligence activities:3 Eihese hints of possible concessions may have been designed to forestall any British support for German confederation or a far-reaching disengagement scheme. The German ambassador in Moscow says Adenauer is prepared to be flexible but opposes advancing any concessions prior to an East-West meetingo-f 4 Feb 59 CENTRAL INTELLIGENCE BULLETIN Page 10 Approved for Release: 2020/02/21 C03003303 Approved fOr71e-l-a-se-:76i676-2/2T C03003303 Nrof 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 CONFIDENTIAL Approved for Release: 2020/02/21 C03003303 4 ' d for Release: 20M02/21 CO3003303, Wit/7007./ZP2e A k' % -/de