CENTRAL INTELLIGENCE BULLETIN - 1959/01/16

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03187387
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 16
• Document Creation Date: February 25, 2020
• Document Release Date: February 27, 2020
• Publication Date: January 16, 1959

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16 January 1959
Copy No. C 64
CENTRAL
INTELLIGENCE
BULLETIN
DOCUMENT NO.
NO CHANGE IN CLASS.
DECLASSIFIED
CHANC.'4ED TO: IS S C
NEXT REVIEW DATE:
OAT-
AuT Fig, 7
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16 JANUARY 1959
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I. THE COMMUNIST BLOC
II. ASIA-AFRICA
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Iraq - Qasim's order placing Commu-
nist-dominated Popular Resistance
Force under army may be result of ar- �
my pressure.
Greek, Turkish foreign ministers plan
to meet in Paris on 18 January to break
Cyprus deadlock. 0
Cambodia - South Vietnam's plotters
against Sihanouk may have established
contact with military commander in
western Cambodia.
India plans larger five-year plan to
begin in 1961, which will have fore-
eign ,exchange gap of several billion
dollars.
V /
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III. THE WEST
0 France-Algeria - De Gaulle reported
ready to offer Algeria membership in
French Community; rebel leaders may
be willing to accept.
0 Latin American refugees seeking Cas-
tro's support to unseat rightist regimes.
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CENTRAL INTELLIGENCE BULLETIN
16 January 1959
DAILY BRIEF
L THE COMMUNIST BLOC
IL ASIA-AFRICA
Iraq: Prime Minister Qasim's order of 14 January, as
written, denies the Communist-dominated Popular Resistance
Force any security functions except in wartime or in an of-
ficially declared state of emergency, when it would operate
under army control. The order may be the result of army
pressure. The local Communist press has not printed the
order. (Page 1)
Cyprus: ahe foreign ministers of Greece and Turkey
apparently intend to meet in Paris on 18 January in an effort
to break the deadlock in their current exchanges over Cyprus.
Turkey is demanding a military base on the island but is
probably willing to compromise for NATO base arrangements
Turkey is also insisting on additional guarantees to protect
Turkish-Cypriot minority rights. Political pressures in both
Greece and Turkey continue to hamper efforts to reach a
cornpromit9 (Page 2)
Cambodia - South Vietnam: aouth Vietnamese plotters
against the Sihanouk regime now may have established con-
tact with General Dap Chhuon, military commander in west-
ern Cambodia.
South Vietnam's representative in Phnom Penh
planned o go to Siem Reap, Chhuon's headquarters "for im-
portant talks." Coordinated planning with Chhuon, who has been
contemplating an internal rightist coup, would significantly ad-
vance clandestine efforts to overthrow the Sihanouk regimfj,
(Page 3)
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L THE COMMUNIST BLOC
IL ASIA-AFRICA
The Iraqi Internal Situation
Prime Minister Qasim's order defining the role of the
Communist-dominated Popular Resistance Force (PRF) and
the newly formed Iraqi Students' Union seems to be a tactical
maneuver in answer to army pressure. Now placed directly
under army command in case of war or officially declared
emergency conditions, the PRF and Students' Organization
were warned against taking the law into their own hands and
authorized to act only under specific army directives. Any-
one violating Qasim's order was threatened with quick retribu-
tion for a breach of public security. Baghdad's Communist pa-
pers, have .not pvinted the order, but one commented ambtguously,
The PRF was formed immediately after the 14 July coup.
Modeled on the similar Syrian organization, it soon became
a target of Communist penetration. Its leadership is believed
to have been captured by the Communists almost immediately.
Throughout the fall and early winter the PRF, under Commu-
nist direction, engaged in harassment against pro-UAR ele-
ments as well as Westerners. Widespread disorders in Basra
last month cowed the local garrison, while PRF forces ranged
through the town searching cars and broke into several for-
eign properties. Outbreaks have occurred in Baghdad, as well
as other provincial towns.
A "call by the unions" of Basra on 13 January for training
of port and oil company workers in the use of weapons and in-
corporation in the PRF suggests that the Communists are gain-
ing ascendancy within the labor movement there. This situation
and the prospect of a rival armed force may have alarmed army
leaders. As early as 20 July an order was issued by the mil-
itary closing all unofficial PRF "voluntary enlistment centers."
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India: Although India is unlikely to fulfill more than 80
percent of the original goal of its Second Five-Year Plan
(1956-61)2 India's leaders are thinking in terms of a consid-
erably larger third five-year plan (1961-66). Nehru is wor-
ried about China's economic progress and probably believes
he has no choice but to "think big." A plan of the magnitude
being considered would be beyond India's financial resources
and would probably cause a foreign exchange gap of several
billion dollars. India would continue to look to Western and
Communist nations for the necessary financial aid.
(Page 4)
III. THE WEST
France-Algeria: Ee Gaulle has renewed his efforts to
end the war in Algeria. He is ready to offer
Algeria membership in the French Community, as a result of
preliminary indications that some of the more influential rebe
leaders would accept such a solution. The rumors of negotia-
tions, however, have aroused increasingly overt opposition in
France itself and outright hostility among Europeans in Algeri
(Page 5)
Cuba: Refugees from various Latin American rightist
regimes are seeking Fidel Castro's support to unseat these re-
gimes. The Dominican Republic is likely to be the chief target,
but leaders of the Caribbean Legion, an irregular military force
of professional revolutionaries active a decade ago, are press-
ing for prior action against Nicaragua. Paraguayan revolu-
tionaries are to have been offered arms by
the new Cuban Government. Castro also appears to be lining
up with the foes of Haitian President Duvalier.
(Page 7)
16 Jan 59
DAILY BRIEF ii
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IV. SIGNIFICANT INTELLIGENCE
REPORTS AND ESTIMATES
(Available during the preceding week)
ME 11-4-58. Main Trends in Soviet Capabilities and
Policies, 1958-1963. 23 December 1958
NIE 33-58. Prospects for Turkey. 30 December 1958.
16 Jan 59
DAILY BRIEF lii
z
V.
IA
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Cyprus
Eareek Foreign minister Averoll and Turkish Foreign Min-
ister Zorlu will meet in Paris on 18 January in an attempt to
resolve differences which threaten to cause a breakdown in cur-
rent bilateral negotiations for a Cyprus settlement. If the
meeting results in elimination of the present difficulties, a
subsequent meeting of the premiers of the two countries is en-
visaged. It is not clear, however, how such a meeting could
reconcile the deep-seated differences. The Greek Govern-
ment already blames British "maneuvering" in opposition to
a Greek-Turkish rapprochement for adding to the difficulties
and will probably lay primary blame on Britain if the nego=
tiations collapsE
'Ellie exchange of views between Athens and Ankara, which
has been going on since mid-December, has resulted in agree-
ment on several provisions for a settlement but now is snagged
on two issues. Turkey insists on a military base on Cyprus,
either occupied aolely by Turkish troops or by Turkish, Greek,
and British forces. Athens rejects this demand, although a
compromise settlement establishing a NATO base on Cyprus
eventually might be achieved. The other problem involves
Ankara's demand for something more than an official Greek
guarantee to protect Turkish-Cypriot minority rights. At
present, however, Athens refuses to go beyond a "guarantee
in principleA
[fn Greece, and among the Greek Cypriots, there is bitter-
ness over recent British failure to proceed faster toward end-
ing the emergency regulations�including the exile of Arch-
bishop Makarios. A truce proclaimed by EOKA on 24 Decem-
ber, however, remains in effect. The Greeks hope that the
British Labor party will win the UK general elections ex-
pected this year, believing Labor will be more favorably in-
clined to the Greek Cypriot cause. A subcommittee of the
British Labor party, recently called on the British Govern-
ment to suspend security operations on Cyprus and to proclaim
its willingness to abandon the Macmillan plan)
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Nal
Growing plot Against Sihanouk Regime
CL-iaison may have been established between disaffected
Cambodian General Dap Chhuon and the South Vietnamese
Government, which has been actively plotting with Thailand
to overthrow the neutralist Sihanouk regime in Phnom Penh.
On 13 January, Vietnam's representative in Phnom Penh,
Ngo Trong Hieu, planned to visit Stem Reap�Chhuon's home
station--for "important talks,"
Coordinated planning with Chhuon, who controls
men in the field in addition to the palace guard, would
significantly advance clandestine efforts by Saigon and Bangkok
to unseat Sihanoulg
l_lhuon, who is convinced that Sihanouk must be elim-
inated if Cambodia is to be saved from slipping into the Sino-
Soviet bloc, recently approached the United States for logis-
tical support for a coup against Sihanouk. While Chhuon's
ultimate support for a projected invasion by anti-Sihanouk
forces based in Thailand had been assumed by Thai military
leaders, he has thus far been playing a lone hand_.7
Rietnamese agents in Phnom Penh, who last month spir-
ited royal councilor Sam Sary out of the country, have just
brought out another important political figure�probably
former Premier Yem Sambaur--for use in an anti-Sihanouk
front. Sihanouk only recently became aware of Sam Sary's
defection and has issued orders that he be apprehended or as-
sassinatecg
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India Drafting Enlarged Third Five-Year Plan
India apparently is drafting a third five-year plan (1961-66)
which calls for the expenditure of nearly $21 billion. This is
54 percent over the $13.5 billion likely to be expended during
the Second Five-Year Plan (1956-61), which is expected to
attain only 80 percent of the original investment goal. To reach
third-plan targets, the government and private enterprise would
have to increase their expenditures by 59 and 42 percent re-
spectively over the likely outlays during the period of the
second plan.
Such a plan is beyond India's financial capabilities, particu-
larly in view of the low level of foreign exchange reserves and
the large foreign obligations that fall due during the third-plan
period. If, as seems likely, India attempts to increase indus-
trial as well as agricultural production sharply, the plan prob-
ably will include a foreign exchange gap of several billion
dollars.
Prime Minister Nehru believes India must "think big" to
keep pace with Communist China's "giant leap forward" and
offset India's rising rate of population growth. He is evidently
prepared, in spite of India's current financial difficulties, to
override the advice of both foreign and domestic financial cir-
cles that the third plan should concentrate on consolidating
past gains rather than attempt further rapid economic expan-
sion. Nehru apparently believes he has no choice but to in-
crease the pace of economic development, counting on Western
and Soviet bloc interest to result in sufficient foreign aid to
enable India to fulfill the plan. The Ministry of Finance, which
is opposed to such a large plan, may succeed in cutting it
somewhat, but reducing the plan would be politically difficult
should it become public knowledge.
CONFIDENTIAL
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I I I. THE WEST
De Gaulle Ready to Offer Algeria Membership in
French Community
tThere is mounting evidence that De Gaulle has renewed
serious efforts to find an immediate political solution in Al-
geria through contacts with the Algerian rebel leaders and
Egyptian President Nasir. De Gaulle reportedly has dis-
cussed with Premier Debre and key cabinet members a plan
whereby Algeria could enter the French Community with its
own government. Should there be strong opposition in the
National Assembly, in the army, and among European settlers
in Algeria, De Gaulle would order a referendum in France on
the question) and he is sure a majority would approveA
[A Moslem intermediary, who recently sounded out rebel
leaders on De Gaulle's plan, reportedly found the most impor-
tant�including Ferhat Abbas BelkacemiCrim and Ben Bella--
favorable to such a solution. A spokesman for the rebel Pro-
visional Algerian Government stated on 11 January that he
expected De Gaulle to call for round-table talks of all parties
concerned--the French Government, the National Assembly
deputies from Algeria, the Algerian National Liberation Front,
and its rival, the Algerian National Movemen19
aalian Premier Fanfani on a visit to Paris is reported to
have delivered a message from Nasir approving the proposal
to include Algeria in the French Community. De Gaulle has
asked Fanfani to request Nasir to use his influence with rebel
leaders to end the wag
th...0 Gaulle has recently taken the position that he would sub-
ordinate the search for a political solution in Algeria to imple-
menting his economic and social program there, but he has
probably been impelled, in part by economic pressures, to
continue searching. The growing opposition to his economic
program in France would be partially alleviated if he could
end the costly economic drain of the Algerian wat:7
ateanwhile, his 13 January clemency measures affecting
the rebels and rumors of negotiations have aroused rightist
opposition in France as well as Algeria. The two large5t7
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gdssembly groups--the Union for the New Republic (UNR) and
the Independent party--are reported to have publicly endorsed
the policy of integration of Algeria with France, even though
the UNR was elected on a "loyalty to De Gaulle" program. In
Algiers, extremist groups now are openly hostile to De Gaulle,
and the American consul general has noted that the absence of
organized demonstrations has been due more to the fact that
"the machinery is rusty" than to an attitude of resignation on
the part of the settlers. An Algiers businessman on 14 Jan-
uary described the situation as "explosivj
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vase 190�
Cuba May Become Center for Plotting Against Latin
American Dictators
Refugees from various Latin American rightist regimes
are already congregating in Cuba seeking Fidel Castro's sup-
port in overthrowing these regimes. Chief among the new
arrivals is "General" Miguel Angel Ramirez, Dominican ex-
ile and leader of the long-dormant Caribbean Legion, which
he is now attempting to reactivate. The legion, an irregular
military force of professional revolutionaries and idealists
dedicated to ousting Caribbean and Central American dictators,
was decisive in Jose Figuerest victory in the 1948 Costa Rican
civil war but failed in subsequent attempts against the Somoza
regime in Nicaragua and Dominican dictator Trujillo. Ramirez
led an earlier abortive plot against Trujillo in 1947 in which
Fidel Castro, then a 21-year-Old student, took part.
Leaders of the new Cuban Government, including Provi-
sional President Urrutia, have publicly declared their sympathy
for any future efforts against dictators remaining in the hemis-
phere. Members of Castro's rebel army are quoted as saying
that they have sworn to carry their "crusade" against dictators
to other countries.
Generalissimo Trujillo of the Dominican Republic, who was
openly sympathetic to Batista and granted him asylum, is prob-
ably the dictator most hated by the new Cuban leaders, How-
ever, General Ramirez and several Nicaraguan exiles recently
arrived in Cuba are
seeking Castro's aid for an invasion of Nicaragua, where the
sons of the late dictator head a government considerably more
liberal than their father's. The unstable government of Pres-
ident Duvalier in Haiti fears Castro, who appears to be siding
with the opposition.
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*one
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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