CENTRAL INTELLIGENCE BULLETIN - 1959/10/07

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03164693
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 11
• Document Creation Date: February 25, 2020
• Document Release Date: February 27, 2020
• Publication Date: October 7, 1959

NEW
3.5(c)
3.3(h)(2)
7 October 1959
Copy No, C 65
CENTRAL
INTELLIGENCE
BULLETIN
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7 OCTOBER 1959
1. THE COMMUNIST BLOC
IL ASIA-AFRICA
Iraq- Qasisn probably aware of latest
plot to assassinate him.
Jordan--King Husayn decides to refuse
meeting with Nasir after renewal of
Cairo-Amman propaganda recrimina-
tions.
Yemen seeks urgent financial assistance
from US.
Nehru feels Tibetan issue may have
precipitated Sino-Indian border dispute
but notes Chinese have always had "ag-
gressive nature."
Indonesian foreign minister reports
"terrific" pressure from Peiping over
decree restricting foreign retail mer-
chants.
0 Ecuador--Visit by President Ponce to
Guayaquil would probably touch off re-
newed disturbances.
0 Panama�Dissatisfaction over economic
conditions expressed in "hunger march"
to capital.
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CENTRAL INTELLIGENCE BULLETIN
7 October 1959
DAILY BRIEF
I. THE COMMUNIST BLOC
IL ASIA-AFRICA
Iraq: Trime Minister Qasim probably is aware in detail
about a plot to assassinate him. Qasim told Ambassador Jer-
negan on 3 October that his intelligence nets in Iraq were better
than those of the US and Britain. Jernegan noted that the guard
around Qasim's office in the Defense Ministry had been increased
Qasim's personal guard has
been increased, noting in particular the strengthening of his pro-
tection as he travels through Baghdad streets,
an: 9aans
UAR President Nasir at a tripartite conference which King Saud
has been trying to arrange since his early September talks with
Nasir in Cairo. Husayn's decision resulted from a new propaganda
battle between Cairo and Amman radios on the subject of resistance
to Communism--a controversy which has arrested the recent trend
toward a detente between the UAR and Jordan. Jordanian broad-
casts commenting on UAR efforts to rally the Arab world against
Communism had charged that it was the UAR which initially "opened
the door" to Communism in the Middle East. Cairo's Voice of the
Arabs replied on 3 October by referring to Jordan as an''opportun-
ist" following "orders of imperialists" who are aligned with Com-
munists against Arab nationalismtl
TO
ET
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Yemen: 'The director general of the Yemeni Foreign Min-
istry told the American charge on 3 October that the Yemeni
treasury is "virtually empty," and requested urgent American
assistance) The charge reports the consensus of Western rep-
resentatives in Taiz that Yemen is approaching bankruptcy and
that the Imam's dominant position will be endangered unless the
government can soon find an estimated $3,000,000 to $52000,000
to tide it over. The Yemeni director general will be visiting
Moscow this month, at which time the USSR may seek to bolster
its influence in Yemen by offering economic assistance.
India: T'rime Minister Nehru told Ambassador Bunker on
24 September that the immediate cause of the Sino-Indian border
problem is Peiping's, irritation over India's treatment of the Dalai
Lama, but that eventually there would have been trouble over the
border anyway. Nehru said the Chinese have always had an "ag-
gressive nature," which manifests itself particularly when the
Chinese feel powerful as a nation, and that they consider Indians
to be "second class,."
Indonesia: Mhinese Communist pressures on the Indonesian
Government to repeal a decree banning foreign retail merchants
in rural areas of Indonesia have been "terrific," according to For-
eign Minister Subandrio. The Chinese ambassador has argued
a the issue heatedly with Subandrio, and leaders of the Chinese Corn-
'k munist community have threatened to bring down the government
by economic retaliation. Sukarno is reported to have been shocked
by the unfriendly Chinese att1tude:7
(Page 1)
III. THE WEST
Ecuador: expect widespread disturbances
if President Ponce attends the 9 October independence celebration
in Guayaquil, where rioting occurred on 1 and 4 October. Guayaquil
V- is the stronghold of opposition elements and a center of economic
unrest, which the Communists are attempting to exploit with new
7 Oct 59
DAILY BRIEF ii
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aggressive tactics. The city, Ecuador's largest, displayed hos-
tility toward Ponce during his last visit there in July. In June it
was the scene of extensive violence which threatened the stability
of his government. (:Page 2)
Panama: Chronic dissatisfaction with the traditional ruling
oligarchy in Panama resulted in a "hunger march" on the capital
on 5 October. Hundreds of unemployed workers and other dis-
gruntled groups took part in a demonstration to demand enact-
0\ merit of economic relief measures by the newly convened Nation-
al Assembly. (Page 3)
7 Oct 59
DAILY BRIEF
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I. THE COMMUNIST BLOC
II. ASIA-AFRICA
Indonesia Under Strong Chinese Communist Pressure to
Repeal Anti-Chinese Measure
[Immediately before his departure for Peiping on 4 October,
Foreign Minister Subandrio informed the American ambassador
that Communist China was exerting "terrific" pressure for re-
peal of an Indonesian decree requiring withdrawal of alien mer-
chants from rural areas. He said the Chinese Communist am-
bassador in Djakarta would not even listen to Indonesian explana-
tions of the measure. Leaders of the Chinese community in In-
donesia have threatened to raise prices to such a level that popu-
lar feeling may force the cabinet to resign. In order to increase
pressure on Djakarta to rescind or postpone carrying out the de-
cree, Peiping may hint to Subandrio that it might slow up its eco-
nomic aid to Indonesia, as well as withdraw offers of military
aiAD
L$._--ubandrio stated that regardless of Chinese pressures, he
would stand firm in his talks in Peiping. Although Indonesia
does not desire a "showdown" with Communist China, it is pre-
pared for one if necessary. Subandrio stated that he has Pres-
ident Sukarno's strong support in the position he is taking, and
that Sukarno had been shocked by the Chinese Communist attituilej
rilubandrio plans to explain to Peiping that the current meas-
ure is a phase of Indonesia's "socialization" program. Djakarta
apparently hopes to turn alien retail trade in rural areas over to
independent Indonesian nationals or to the Indonesian cooperative
movement. Theoretically this change would end the usurious
hold of the Chinese shopkeeper on the Indonesian peasant and
would strengthen the economir, role of the Tnrinnr.Qinri hiri
class)
�����
SONEIDENTTAT-
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III. THE WEST
Violence May Spread in Ecuador
expect widespread disturbances if Pres,-
ident Ponce attends, the C October independence celebrations in
Guayaquil, where rioting occurred on 1 and 4 October, However,
Ponce is not likely to risk touching off serious violence, particu-
larly since the armed forces and other advisers reportedly are
opposed to his attendance.
Guayaquil, Ecuador's largest city, is the stronghold of oppo-
sition elements and a center of explosive labor and economic un-
rest which the Communists are attempting to exploit with aggres-
sive new tactics. The Third-of-June Youth Movement, controlled
by Communists and including the youth of two leftist parties, is
being used to foment unrest designed to unseat Ponce, disrupt the
11th Inter-American Conference scheduled for Quito in February
1960, and block a possible meeting of American presidents in
Guayaquil after the conference. The movement was, behind the
1 October riots and is planning demonstrations for 9 October.
Extensive violence in Guayaquil in early June posed the most
serious, threat to Ponce since his election by a slim plurality in
1956. The city also displayed a deep hostility toward him during
his last visit there in July.
(The armed forces, which are believed capable of maintaining
order, have canceled invitations to foreign military attaches to at-
tend the 9 October ceremonies, and the local commander report-
edly has requested the imposition of martial lawq
7 Oct 59
CFMTDA I IMTPI I InlZkIr= RI II I CTIkl
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Nue
Panamanian Hunger March Indicative of Social Unrest
The "hunger march" on the Panamanian capital on 5 Oc-
tober by hundreds of unemployed Colon workers and other
disgruntled groups was an expression of deep-seated popular
resentment against the economic policies of the Panamanian
Government. The purpose of the march, led by Colon labor
leader Andres Galvan, was to demand the immediate enact-
ment of unemployment relief measures and a minimum wage
law by the newly convened National Assembly.
The 50-mile trek to the capital was undertaken by about
600 persons, whose ranks were swelled to approximately
1,000 by the time the orderly procession reached the Leg-
islative Palace. When the National Assembly adjourned for
lack of a quorum, marchers occupied the legislative cham-
bers and demonstration leader Galvan exhorted the self-
styled "people's deputies" not to budge until the government
enacted the desired legislation. Two and a half hours later
National Guardsmen using tear gas ejected the demonstra-
tors and arrested Galvan and other leaders.
Unless immediate measures are taken to improve the
economic situation of Panama's lower and middle classes,
further disorders are likely. President de la Guardia frank-
ly acknowledged in his 1 October state-of-the-nation address
that Panama currently lacks the economic means to support
a rapidly increasing population. With the approach of the May
1960 presidential election, dissident politicians are likely to
exploit popular grievances. The government's candidate,
Ricardo Arias, is regarded as the epitome of the corrupt
oligarchy which has been in power in Panama for 55 years.
7 Oct 59
CENTRAL INTELLIGENCE BULLETIN Page 3
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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
off ice of Defense and Civilian Mobilization
Director, National Aeronautics and Space Administration
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 Army
Director of Naval Intelligence, Department of Navy
Assistant Chief of Staff, Intelligence, Department of the Air Force
Supreme Allied Commander, Europe
Commander in Chief, Pacific
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
CONFDNTL
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