CENTRAL INTELLIGENCE BULLETIN - 1959/05/04

• Document Type: SPECIALCOLLECTION
• Keywords: 2018 Sanitization
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03153737
• 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 4, 1959

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4 May 1959
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CENTRAL
INTELLIGENCE
BULLETIN
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4 MAY 1959
I. THE COMMUNIST BLOC
Khrushchev tells Montgomery the
USSR will not rush into peace treaty
with East Germany.
II. ASIA-AFRICA
Soviet-Iranian propaganda battle
continues unabated.
Joint Guinea-Ghana proposal calling
for union of independent African states
is gesture aimed at enhancing prestige
of Tourd and Nkrumah.
III. THE WEST
OAS action in Panama may reduce
invasion threats in Caribbean, but
Panamanian Government still faces
domestic tensions.
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0 Britain continues to press for revi-
sion of 1961 agreement on Caribbean
bases.
\ 0 Bolivia faces new financial crisis; anti-
American actions possible.
LATE ITEM
0 Security forces in northeastern
Iraq meeting continued
from dissident Kurds.
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4 May 1959
DAILY BRIEF
I. THE COMMUNIST BLOC
Khrushchev-Germany: In Field Marshal Montgomery's
first interview with IChrushchev on 29 April, the Soviet pre-
mier insisted on the need to settle immediately the "ripe"
questions of a German peace treaty and the Berlin problem.
He categorically stated that lithe West would not agree to a
peace treaty with the two German states, the Soviet Union
would conclude a separate treaty with East Germany. He
added, "If this would lead to war, then the Soviet Union will
accept its destiny." Montgomery replied that in such an event,
"the West would not flinch."
In their second meeting, on 30 April, Khrushchev said
he believed Montgomery's arguments against precipitate ac-
tion on a separate peace treaty to be correct, and he implied
that the USSR would not rush matters on this issue. Ehru-
shchev's attitude is in line with the USSR's efforts to demon-
strate its desire to exhaust every possibility for a negotiated
settlement of the Berlin and German peace treaty issues.
(Page 1)
IL ASIA-AFRICA
Iran: the Shah of Iran may re-
quest additional military aid and security guarantees during
his 5-7 May visit to the United Kingdom]
Meanwhile, the intensive Soviet propaganda campaign
against the Shah continues.
Tehran informed its ambassador in Moscow on
1 May that it is "very difficult" to tone down propaganda in the
face of continuing Soviet attacks.
Iran was anxious to stop the propaganda ex-
change, provided the USSR would reciprocate.
(Page 2)
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Ghana-Guinea: The joint declaration on 1 May by Prime
Minister Nkrumah of Ghana and Guinea's President Sekou Tourd
proposing a "union" of independent African states appears to be
essentially another propaganda move designed to enhance the
prestige of these two West African leaders. The scheme may
receive nominal endorsement from some other African leaders,
but any new association of African states is unlikely to involve
any surrender of sovereignty. The more limited "union" of
Ghana and Guinea, projected with much fanfare last November
by Nkrumh 2nt Pnur his g far failed to acquire any sub-
stance.
III. THE WEST
Panama:, Prompt and effective action by the OAS to re-
move the threat to the Panamanian Government posed by some
85 invaders from Cuba has probably reduced the danger of fur-
ther expeditions against other countries of the Caribbean area.
Their surrender, however, has only temporarily strengthened
the government of President de la Guardia, whiich will continue
to be weakened by domestic political rivalries.
(Page 3)
Britain - West Indies Federation: The British are continu-
ing to press for revision of the 1941 US-UK agreement concern-
ing US bases in the Caribbean. London's position is that an offer
to negotiate now would undermine the extreme position of Trin-
idad's Chief Minister Eric Williams and prevent anti-American
pressure from reaching serious proportions.
(Page 4)
Bolivia: The National Bank of Washington has refused to
honor Bolivian Central Bank checks until further notice because
Bolivia continues to overdraw its account. As a result, financial
panic could occur in Bolivia within a day or two, and the increased
tension could lead to new outbreaks of anti-American violence.
(Page 5)
4 May 59
DAILY BRIEF
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LATE ITEM
*Iraq:
that fEeCampaign begun by security forces last week to restore
the government's authority over dissident Kurdish tribesmen in
northeastern Iraq is meeting considerable resistance.
the tribesmen are using machine guns,
mortars, and hand grenades in their attacks; it is alleged in
some cases that "foreign soldiers" and tribesmen from Turkey
and Iran are involved. The UM% which is giving the disorders
heavy propaganda play, may try to intensify border troubles in
northwestern Iraq, using Shammar tribesmen who have been
armed and partially trained by UAR personnel.
(Page 6)
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I. THE COMMUNIST BLOC
Field Marshal Montgomery's Interview with Khrushchev
Field Marshal Montgomery stated at a private dinner in
Moscow on 30 April that, in his conversation with Khrushchev
the previous day, the Soviet premier had strongly reasserted
the need to settle immediately the "ripe" questions of a peace
treaty with Germany and the Berlin problem. Khrushchev par-
ticularly emphasized that if the West would not agree to a peace
treaty, the Soviet Union would conclude a separate treaty with
East Germany. He added, "If this would lead to war, then the
Soviet Union will accept its destiny."
Montgomery stressed that if war resulted from this dan-
gerous situation created by the USSR, "the West would not flinch."
He urged Khrushchev to postpone precipitate action on a separate
peace treaty and concentrate on a negotiated settlement of Ber-
lin's status/ but the Soviet premier was adamant.' Headdedthat,
at any rate, he would have to "consult his government" on Mont-
gomery's suggestions.
During his second interview with Montgomery, on 30 Aprils,
Khrushchev said he had come to the conclusion that Montgomery
was correct, and he implied that he would not rush the conclu-
sion of a separate peace treaty with East Germany. He again
firmly maintained the necessity of solving the Berlin question.
The Soviet leader may hope that by attempting to convince
Montgomery that his visit has caused the USSR to moderate its
course, he will strengthen the conviction held in some Western
circles, notably in Britain, that there are good chances for suc-
cessful negotiations with the USSR on the heads-of-government
level.
To Montgomery's question regarding possible Soviet fears of
Communist China with its increasing industrialization and growing
population, Khrushchev stressed the common aims and interests
of the USSR and China and remarked that the two countries were
"back to back."
4 May 59
CENTRAL INTFI I inpkirp RI III =TIM
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IL ASIA-AFRICA
Shah May Seek British Security Guarantees to Counter
Soviet Threat
ahe Shah of Iran, faced with an intensive subversive prop-
aganda campaign from the USSR, may, during his visit to London
this week) request
guarantees,
will be in
increased British mili
security
The Shah
1 visit Den
erwic
ewi
mark, the Netherlands, and possibly France and Switzerland4
(Iran is already receiving some military aid and training
from the UK, mostly through the Baghdad Pact alignment, but
Tehran apparently now feels the necessity of stronger bilateral
guarantees from the British. Britain's most significant contribu-
tion to Iranian defense is the radar network, currently under con-
struction and scheduled for operation in early 1960, along the
Iranian-Soviet border. The British have offered to give qualified
Iranian military personnel training in such fields as communica-
tions, engineering, gunnery, photoaranhic intelliwpnep 7id staff
operations
Meanwhile, Tehran is showing increased concern over Soviet
propaganda efforts aimed primarily at undermining the Shah by
inciting tribal and popular unrest.
if
Soviet "offensive propaganda and indecent publications continue,"
the Iranian Government will be forced to take counteraction in ac-
cordance with the "general sentiments" of the Iranian people.
Iranian radio and press comment hostile to the USSR was toned
down considerably for several days during the latter Dart, of
A ril in the hope that Moscow would reciprocate.
A press report on 2 May of an interview with the Shah,
owever, notes that Tehran remains willing to negotiate with the
USSR if the Russians do not pose unacceptable conditions.
British assurances during the Shah's forthcoming visit would
be important in encouraging him to stand firm despite threats or
enticements from the USSR and the increased threat OMMU-
nist take-over in neighboring Iraq,
4 May 59
CENTRAL INTFI I inpkirr RI II cTI kl
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III. THE WEST
The Situation in Panama
The surrender on 1 May, under the auspices of the special
committee of the Organization of American States, of the 85
invaders from Cuba who had landed in Panama on the night of
24-25 April has removed a serious threat to the government of
President Ernesto de la Guardia. The OAS-sponsored coastal
patrol, composed of aircraft and US and Colombian surface ves-
sels, continues on the alert for another boatload of revolution-
aries rumored to have left Cuba on 28 April. Guatemalan Pres-
ident Ydigoras, fearing that this ship may have been diverted
there, has alerted his armed forces for possible landings.
The Panamanian Government continues to be basically weak,
however, as evidenced by the virtual panic which the landing of
only 85 to 90 men caused among members of the ruling oligarchy,
who evidently feared that the invasion might spark a drastic so-
cial upheaval. The lower classes in Panama, on the other hand,
were apathetic. Knowing that Roberto Arias, a member of a
prominent and wealthy Panamanian family, was a leader of the
attempt, they evidently felt this was simply another instance of
the continual maneuvering for power and spoils among factions
of the oligarchy. These factional maneuverings are likely to con-
tinue after a brief respite. The unpopular National Guard may
have lost prestige by its obvious reluctance, if not its inability,
to take action against the invaders.
The prompt and effective OAS action has probably reduced
the danger of further expeditions against other countries of the
Caribbean area, such, as Nicaragua. the Dominican Republic,
and Haiti.
4 May 59
CENTRAL INTELLIGENCE BULLFTIN
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British Urge Revision of West Indies Bases Agreement with US
The British are urging that the United States agree to their
15 April proposal for a revision of the 1941 US-UK agreement
concerning US facilities in the Caribbean notably the naval sta-
tion at Chaguaramas� Trinidad, and guided-missile tracking
stations at Antigua and St. Lucia. The British claim they are
"sitting on a powder keg watching the fuse burn down," and that
local pressures might mount dangerously if nothing is done.
Chief Minister Eric Williams of Trinidad, who has been
making an issue of the question of base rights, has not yet ob-
tained a reply from the West Indies Federation Government to
his request for a revision conference in which he wants to par-
ticipate. The British argue that by taking the initiative and of-
fering to revise the agreement with the Federation Government,
the extreme demands expected from Williams can be undercut.
They state that since Williams may become the next federal
prime minister, the US can get better terms by revising now
than by waiting until the federation becomes independent, prob-
ably within three to five years.
khe British appear to be overstating the situation, however,
in an effort to gain credit with the federation. Although there is
some feeling in Trinidad against the presence of US bases, the
US consul general in Jamaica--the most important unit in the fed
eration--sees no noticeable pressure for the release of base areas
and does not anticipate any in the immediate futurej
examples of the type of minor revision they have in mind,
the British have suggested modifying customs provisions, giving
up unneeded areas, and paying for use of local airfields. They
may also suggest an annual rent.1
4 May 59
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Financial Panic Threatens in Bolivia
The National Bank of Washington has refused to honor
checks drawn on the Bolivian Central Bank until further no-
tice. As a result, financial panic could occur within a day
or two, according to the representative of the International
Monetary Fund in Bolivia.
The National Bank is said to have honored a number of
Bolivian overdrafts in April, but La Paz apparently has been
unable to make deposits covering them. Bolivia has had an
increasing deficit in dollars for several months and has de-
pended on such expedients as the time lag between the writing
and cashing of a check to prevent its checks from "bouncing."
The president of the Bolivian Central Bank recommended
suspension of dollar sales in Bolivia on 24 April, but both
President Siles and his minister of government opposed tak-
ing such serious action while still faced with political reper-
cussions from the rightist revolutionary attempt of 19 April
and from the continuing effort to cut the government subsidy
in the tin-mine commissaries.
Financial panic is likely to generate new political ten-
sions which may be reflected in outbursts of violence against
the United States for its virtually complete suspension of eco-
nomic aid during the past two months. It will also cause a
run on the banks and a sharp renewal of the inflationary spiral
which Bolivia has kept under control since the US-backed
stabilization program began in, December 1956.
4 May 59 CENTRAL INTELLIGENCE BULLETIN
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LATE ITEM
Dissident Iraqi Tribal Elements Continue Resistance
The Iraqi Army's show of force in the Kurdish mountain coun-
try near Iraq's frontier with Iran and Turkey appears to have pro-
voked tribal resistance to such an extent that in some instances
the position of isolated security posts has been described as "crit-
ical." tribal
attacks were still being carried out against scattered police posts
in the area northeast of the town of Erbil, although it had been
reported that resistance in the northernmost portion of the area
was overcome on 1 May. The army operation, which began about
27 April, involves one brigade
The strength of the tribal forces involved is not known, Lb,ut the
700-800 Kurdish refugees who obtained asylum in southern Turkey
last week allegedly left behind 1,500 able-bodied fighting men,'
They are attacking the police posts probably to capture addifional
arms,
the tribes are using hit-and-run tactics.
firing two-inch mortar shells.
"bombs" suspended from their belts, and
the attack was being pressed with machine guns
and hand grenades.
"foreign
soldiers" were "believed" to be among the dissidents and that the
"rebels" were being reinforced with Turkish and Iranian tribes-
men will strengthen Baghdad's belief that these troubles are a re-
sult of foreign intervention. Trime Minister Qasim last week
voiced to Ambassador Jernegan his suspicion that the United Stat
as well as Turkey and Iran, was involved in these activitie6
There is as yet no evidence that the fighting in northeastern
Iraq has been coordinated with any new effort by the dissident
Shammar tribal elements, armed and encouraged by the UAR,
along Iraq's northwestern frontier with Syria. The UAR began
on 3 May to give heavy propaganda play to the Kurdish trouble,
however, and Cairo and Damascus may seek quickly to develop
new operations by the Shammar.
an intertribal clash involving the Shammar and the nor-
y loyal Yatidi, probably in the area north of Mosul.
ma
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4 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
CO NTIAL
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