CENTRAL INTELLIGENCE BULLETIN - 1959/01/19

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03023341
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 14
• Document Creation Date: February 25, 2020
• Document Release Date: February 27, 2020
• Publication Date: January 19, 1959

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Copy No, C 63
CENTRAL
*est
19 January 1959
I\TELLIGENCE
BULLETIN
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19 JANUARY 1959
I. THE COMMUNIST BLOC
Bulgarian party leaders quarrel
over proposal to follow Peiping
example of agricultural communes.
IL ASIA-AFRICA
Nasir said to have assured pro-
UAR Iraqi nationalists he will not
appease Qasim.
Saudi Arabia announces first mod-
ern budget; King retains separate
funds for Royal Guard and tribal
armies.
Turkish opposition party plans to
attack Menderes for "submissive-
ness" to US.
Afghanistan receives wheat from
USSR to match US emergency grant.
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III. THE WET
� Cuba - Fidel Castro determined
to continue executions 4espite hem-
isphere-wide criticism.
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CENTRAL INTELLIGENCE BULLETIN
19 January 1959
DAILY BRIEF
I. THE COMMUNIST BLOC
*Bulgaria: there appear to have been strong differences
within the Bulgarian party central committee at its December
meeting over plans for the reorganization of the economy,
particularly with regard to the form of agricultural collec-
tives. Party First Secretary Zhivkov reportedly wanted to
continue the gradual merger of collective farms while the
party's former Stalinist boss, Chervenkov, possibly in an
effort to unseat Zhivkov, vigorously proposed the creation
of Chinese-type communes. Decisions of a 16-17 January
centr 1 committee plenum suggest that the Zhivkov policies
have won out at least for noyg (Page 1)
IL ASIA-AFRICA
Iraq-UAR: araqi nationalists, including some cabinet
members� who are plotting a coup against Prime Minister
Qasim have urged President Nasir not to appease Qasim.
Nasir is said to have replied that he would not meet with
Qasim to resolve their differences, and a subsequent Cairo
broadcast indicates that he has instructed the Cairo press to
continue its attacks on Communists in Iraq,. A Qasim-Nasir
meeting reportedly was suggested to a pro-Communist Iraqi
official by the Soviet and Chinese Communist ambassadors in
Cairg (Page 2)
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Saudi Arabia: Saudi Arabia's "first real budget," which
has been the focal point of Crown Prince Faysal's attempt to
K.. introduce drastically needed reforms in Saudi Government
WI/operations, was announced by royal decree on 14 January af-
ter many delays. Although details are incomplete, the budget
3.1vs 1" offers promise of bringing the country's chaotic finances un-
der a semblance of control. While allotments to the royal
family and military forces have been considerably reduced,
King Saud has won his fight to retain separate allotments for
the Royal Guard and the tribal militia.
There are indications that the Kings confluence in ms
ability to resist Faysal's inroads on his authority is increas-
ing. (Page 4)
Turkpy: rEhe major opposition Republican People's party
in Turk ey is reported to have decided secretly at its recent
national convention to attack the Menderes regime for its
"submissiveness" to the United States. The RPP intends to
demand Turkish control over most of the bases granted the
United States and withdrawal from the Baghdad Pact. It
will, however, favor maintenance of ties with NATO as the
keystone of Turkey's defense policy. Since the RPP's pop-
ular support has been growing, American prestige will un-
doubtedly suffer from such attack_sj
(Page 5)
Afghanistan: The impact on Afghanistan of a recent
emergency grant of 50,000 tons of US wheat has probably
been considerably lessened by Moscow's provision of 40,400
6 tons. Afghan news agencies have publicized the receipt of
grain from both countries. The Soviet wheat may also be
supplied as a gift. (Page 6)
III. THE WEST
� Cuba: Despite condemnation throughout the hemisphere
of the summary executions in Cuba, Fidel Castro continues
19 Jan 59
DAILY BRIEF
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to try to justify the actions as necessary to "purify Cuba."
Castro has replied in strong terms to US criticism, but
seems to ignore that coming from other countries. His
official newspaper on 17 January, in a long and strongly anti-
US editorial,called for a mass rally on 21 January in support
of his policy of "social prophylaxis" by the "exemplary pun-
ishment of those reponsible for the tyranny, so beloved by
the paid yellow press." Uruguay, meanwhile, has sent a
"friendly note" to Cuba's UN delegation calling for cessa-
tion of the executions.
19 Jan 59
DAILY BRIEF iii
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I. THE COMMUNIST BLOC
Controversy Developing&Over Bulgarian Agricultural Policy
TD-uring a special plenum of the central committee of the
Bulgarian Communist Party, held from 20 to 22 December, a
split apparently developed between party First Secretary Todor
Zhivkov and ex-party boss Vulko Chervenkov on the question of
agricultural policy. Zhivkov reportedly favored continuation of
a policy of relatively moderate change in the Bulgarian economy,
based primarily on the merging of collective farms. Cherven-
kov, possibly hoping to oust Zhivkov and re-establish himself--
in fact if not in name--as leader of the party, proposed a more
drastic reorganization of Bulgaria's administration and economy,
centered on the creation of Chinese-type commune
� title policy of amalgamating collective farms was first set
forth at a plenum in early October by Zhivkov and was made part
of a more inclusive economic development plan advanced at a
subsequent plenum on 11 November. The need for further changes
In administration and organization to implement November's de-
cisions was probably the primary reason for calling the special
plenum in December. However, the decisions of another cen-
tral committee plenum held 16-17 January suggest the policies
advocated by Zhivkov have won out at least for the time beine
rahervenkov probably has the unexpressed loyalty of the
leaders on the lower party levels, mot of whom have a hard-
line attitude which would cause them to see more of a kindred
spirit in Peiping than in Moscow. Zhivkov on the other hand
has the indisputable support of Soviet party boss Ehrushchev,
a fact which so far has probably prevented many Chervenkov
supporters from openly opposing hin_v_
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19 Jan 59
CENTRAL INTELLIGENCE BULLETIN Page 1
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IL ASIA-AFRICA
Iraqi Plotters Urge Nasir Not To Appease Qasim
ffr area ambassador in Cairo, speaking on behalf of an
Iraqi nationalist group which is planning to overthrow Prime
Minister Qasim's government, warned UAR President Nasir
on 12 January not to appease Qasim,
The nationalists say Qasim and his Com-
munist supporters would like to conciliate Nasir because UAR
press and radio attacks have greatly disturbed them, and that
any appeasement would only allow time for the Communists to
consolidate their position in Iraq. The plotters claim the suc--
cess of their coup depends on a continuous UAR propaganda
campaign against the Qasim regimt..1
Iraqi cabinet members in-
volved in the plot will not resign since they believe that by re-
maining in office they can aid the plot and learn whether it
becomes compromised. This is the first indication that any
of Qasim's ministers are actually plotting against him, although
some have been reported dissatisfied and critical of the.. prime
minister., Foreign Minister Jumard, Minister of Guidance
Shanshal, and Minister of Public Works Baba Ali reportedly
have criticized Qasim's attitude toward Iraqi Communist
Nasir is said to have told the Iraqi ambassador that he
woul not meet with Qasim and that he would instruct the Cairo
press to continue its attacks on Iraqi Communists. On 17 Jan-
uary, Cairo radio quoted an Egyptian press attack on the Iraqi
Communist party, suggesting that Nasir's order has been im-
plemented. The attack, however, avoided any direct criticism
of Qasimp
.he Soviet and Chinese Communist ambassadors to the UAR
allegedly suggested to Iraqi Minister of Economy Kubba, a pro-
Communist who was in Cairo in December, that the only soluti.20
19 Jan Jan 59 CENTRAL INTELLIGENCE BULLETIN
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the current Iraqi-UAR estrangement was for Qasim to meet
with Nasir personally. The Iraqi ambassador urged Nasir to
avoid such a meeting on grounds that nationalist strength in the
Iraqi Army would be undermined. An earlier report indicated
Ir qi division commanders had nearly completed plans to over-
throw Oasim. and th.t they h d received Nasir's approv9
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Saudi Arabian Budget Published
A Saudi Arabian national budget was announced by royal
decree on 14 January�nearly six months after the expiration
of the previous fiscal year. This budget, described by Pre-
mier Crown Prince Faysal as "the first real budget in the
history of Saudi Arabia," had been the focal point of Faysal's
attempt to introduce drastically needed reforms in Saudi Gov-
ernment operations. Although Faysal's austerity program has
made progress in bringing the country's chaotic finances un-
der a semblance of control, and although Faysal publicly ap-
plauded King Sa,ud's authorization of a substantial curtailment
in the huge allocation for support of the royal family, the few
details available suggest that traditional forces headed by the
King have resisted major concessions.
According to the Saudi announcement, the budget is to be
balanced at 1.41 billion Saudi riyals (about $350,000,000). Vir-
tually all income is to be derived from oil operations. The
principal reductions have been made in defense spending, cut
by about half to around $47,000,000, and in the allocation to
the royal family, cut from an estimated $75-100,000,000 to
about $59,000,000.
The inclusion of separate budgetary provision for both the
Royal Guard (about $2,750,000) and the tribal militia (about
$13,750,000) appears to be an important victory for King Saud.
These forces have been controlled and personally cultivated
by him. Last summer, Faysal reportedly attempted to induce
the King to dissolve the tribal militia and merge it with the
army, or absorb the expense out of his own funds.
Faysars efforts to implement his reform program have
strengthened the position of the King in recent months, since
most of the royal family rallied to his side in order to resist
further inroads on their income.
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Turkish Opposition Party May Launch Anti-American Campaign
ffiie opposition Republican People's party (RPP) in Turkey
may soon launch an attack against the government of Prime
Minister Menderes for its alleged submissiveness to the United
States. This could adversely affect American prestige in Tur-
key, which has already declined somewha_g
EIPP President Ismet Inonu, former president of Turkey,
in a carefully written policy statement during his party's re-
cent national convention, deliberately omitted his traditional
friendly reference to the United States. This purposeful omis-
sion is said to foreshadow intensified attacks on the foreign
policy of the Menderes government. Inonu feels the United
States is responsible for maintaining Menderes in offic,.:7
ffije RPP is reliably reported to favor restricting US base
rights in Turkey and, in general, driving a harder bargain with
Washington for Turkish cooperation. Since the Iraqi coup, the
opposition has been very critical of the Baghdad Pact and now
may urge Turkey's withdrawal. However, the RPP continues to
favor the retention of Turkey's ties with NATO as a keystone of
defense policy)
With nearly one third of the seats in the Grand National
Assembly, the RPP has widespread popular support, especially
in urban areas, and the planned attack against the government
would probably receive wide approval. Although national elec-
tions are not due until 1961, the opposition party is already mak-
ing scathing and effective attacks on other aspects of Menderes'
policies. Inonu is taking special advantage of the government's
loss of popular support which has resulted from Turkey's eco-
nomic difficultie.g
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Afghanistan to Receive Soviet Assistance to Meet Wheat Shortage
The impact on Afghanistan of a recent emergency grant of
50,000 tons of US wheat has probably been offset by Moscow, which
has agreed to supply 40,400 tons of Soviet wheat to meet an Afghan
food shortage.
The Afghan Government request for American help had in-
dicated 50,000 tons of wheat would meet the country's antici-
pated emergency shortage. In view of the proximity of the
USSR, Soviet deliveries now may take care of the most critical
shortages which the US shipments were expected to relieve.
Kabul, however, may hope to utilize both the US and Soviet de-
liveries in improving its food position.
In early December, during the prolonged negotiations be-
tween Afghanistan and the United States for wheat assistance and
at a time when Afghan relations with the West appeared to be
strained, the director of economic affairs in the Afghan Foreign
Ministry informed the American Embassy that his government
had requested Soviet assistance in meeting the wheat shortage.
It seems likely the Soviet wheat will be provided as a gift
rather than on a loan basis. This is suggested by the tenor of
Kabul's thanks to the USSR and its protestations to the United
States that it could not abandon its policy of refusing further
loans in order to secure American wheat. RIle USSR is reported
to have already made an exception to its general policy of re-
stricting its assistance to loans by agreeing to pay the entire
cost of a number of joint economic projects and military train-
ing agreed on during Afghan Foreign Minister Naim's recent
visit to Moscowg
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19 Jan 59 CENTRAL INTELLIGENCE BULLETIN Page 6
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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
Special Adviser to the President
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
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
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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