CENTRAL INTELLIGENCE BULLETIN - 1960/06/21

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03189340
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 12
• Document Creation Date: March 17, 2020
• Document Release Date: March 26, 2020
• Publication Date: June 21, 1960

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21 June 1960
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INTELLIGENCE
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9 JUN 1960
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IGegior RIG.
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21 JUNE 1960
I. THE COMMUNIST BLOC
USSR deposits $2,000,000 in New York
bank against $100,000,000 line of credit
for Ethiopia.
II. ASIA-AFRICA
Japan--Kishi appears increasingly iso-
lated; press and public hold him respon-
sible for recent chaos.
Algeria--Rebel leaders still skeptical of
Be Gaulle's ability to provide adequate
guarantee on a referendum.
III. THE WEST
New British formula for Cyprus bases,
to be presented to Makarios shortly,
would still leave several problems out-
standing.
0
Austrian newspaper campaign on the South
Tirol increases likelihood that Vienna's
dispute with Italy will be brought to UN.
SECRET
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21 June 1960
DAILY BRIEF
L THE COMMUNIST BLOC
USSR-Ethiopia: The Soviet Union, departing from its
usual policy of not extending cash loans to nonbloc coun-
tries, has deposited in a New York bank $2,000, 000 to the
account of the Ethiopian Government. The sum is to be deb-
1_/ ited against the Soviet $100,000,000 line of credit previously
0 fc-- extended to Addis Ababa. Moscow presumably hopes this
gesture of good faith will prompt Ethiopia to utilize more fully
and quickly Soviet and other bloc economic aid credits, use of
which thus far has been handicapped by lack of effective Ethio-
pian cooperation in the planning stages.
Page 1)
I I. ASIA-AFRICA
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CENTRAL INTELLIGENCE BULLETIN
�
*Japan: Prime Minister Kishi appears to be increasingly
� \ isolated, both politically and personally, as leftists and contend-
,
0 (1 ing groups within his party accelerate demands for his resigna-
,\
tion. The press is continuing to excuse leftist violence as justi-
,\
/0"drftends to be responsive to efforts to make Kishi the scapegoat for
iably provoked by Kishi's policies and blunders, and the public
the recent chaos. Continuing demonstrations planned for this
,LLA week will have the ouster of Kishi as their principal immediate
/. jbjective. Kishi told the secretary general of his
ry,,,441-' party that after the security treaty with the US went into effect,
6.1-2yA.,- he would make an announcement that he would be prepared to
resign as prime minister. (Page 2)
Algeria-France: The decision of the Algerian rebel govern-
ment to send a delegation to Paris to explore the possibility of
cease-fire negotiations appears in part to have been influenced
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by popular opinion in Tunisia and Morocco, he rebel leaders
reportedly hope for agreement on some form of association be-
tween Algeria and France, to be ratified by referendum, but are
believed skeptical of De Graulle's ability to provide adequate guar-
antees concerning the administration of any referendum. IDe Gaulle
is unlikely to recognize the rebels as the sole spokesmen for Al-
geria's Moslems and probably will not depart radically from his
plan for a self-determination referendum.
(Page 3)
1:-Cyprus:
III. THE WEST
Even if the proposed solution in the formula on
the cession of British bases is accepted, several other problems re-
main to be resolved�both between the Cypriots and British and be-
tween the Greek and Turkish Cypriot communities.
(Page 4)3
0
Austria-Italy: A vigorous newspaper campaign being waged in
Austria to detach the South Tirol from Italy is likely to bring to a
head the Vienna-Rome dispute over the territory and increases the
likelihood that the issue will be brought to one of the UN agencies.
Austrian authorities have apparently approved the campaign in the be-
lief it will support their demand for full regional autonomy for the
South Tirol within the framework of the Italian constitution--a de-
mand unacceptable to Rome. (Page 5)
, 21 June 60
DAILY BRIEF ii
SEGRE-T-
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Moscow Extends Cash Lean to Ethiopia
The Soviet Union, in a rare departure from its usual
policy of not extending cash loans to nonblcio.: countries, has
deposited in a New York bank $2,000,000 to the accourit of the
Ethopian Government. The loan is to be debited against the
Soviet $100,000,000 line of credit agreed on in 1959, and is
the first cash loan extended by Moscow through its economic
aid program to an Afro-Asian or Latin American country.
Although it is not known to what use the loan will be put,
the fact that the deposit was made in a US bank would tend to
suggest that Addis Ababa is considering purchases with these
funds in the US or some other hard-currency country. The
loan conceivably may be used to purchase agricultural equip-
ment for the Emperor's land reform grogram.
Use of bloc credits thus far has been handicapped by lack
of effective Ethiopian cooperation in the planning stages. An
estimated 40 percent of the Soviet credit has been committed
in principle for an oil refinery, a gold-ore processing plant,
geological surveys, and a feasibility :study for a metallurgical
complex. No portion of the Czech $10,00g000 credit has yet
been obligated. Moscow presumably hopes the recent loan--
as a gesture of good faith--will encourage Ethippia to utilize
Soviet and other bloc economic aid credits more fully and rap-
idly. In addition, Moscow, whithkrnay plan economic overtures
to Somalia may intend 1he loan to minimize Ethiopian reac-
tion.
-CONFIDENTIAL
21 June 60 CENTD Al IINITDI I inckircDliii TIM Page 1
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Japan
Prime Minister Kishi appears to be increasingly isolated,
both politically and personally, as leftists and contending groups
within his party accelerate demands for his resignation. He is
widely held responsible for the present crisis by the press and
by a large segment of the public, who tend to excuse recent left-
ist violence as provoked by Kishi's "high-handed" methods in rat-
ifying the security treaty.
Kishi told the secretary general of the Liberal Democratic
party that after the new US-Japanese security treaty
went into effect, he would make an announcement that he would
be prepared to resign as prime minister. Former Prime Minister
Yoshida, who has been a supporter of Kishi but who now believes
that new leadership is necessary, is pressing faction leaders to
forget personal ambitions in the national interest and to agree on
a successor. Ambassador MacArthur is convinced that Yoshida,
frequently mentioned as an interim prime minister, does not
aspire to the position.
The Japan Socialist party (JSP) meanwhile is planning to sup-
port nationwide strikes called by Sohyo, the pro-Communist labor
federation, for 22 June. These are to be the largest held during
the campaign protesting the treaty and demanding the resignation
of the Kishi government, The "mainstream" faction of Zengakuren,
the radical student organization responsible for the violent demon-
strations which forced postponement of President Eisenhower's
visit, is also expected to participate.
In an about-face on 19 June the JSP decided to retract the mass
resignations of its Diet members, originally submitted as a prop-
aganda maneuver against ratification of the treaty. The JSP now
appears to be broadening its program to include repeal of the treaty.
For consistency's sake, the Socialists are asking for dissolution of
the Diet and a general election, although it is questionable that they
actually desire an election in which the more moderate Democratic
Socialist party (DSP) would probably gain.
21 June 60
CENTRAL INTELLIGENCE BULLETIN Page 2
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-9Eeittur� *le
Algerian Rebels Accept French Invitation to
Cease-Fire Negotiations
The decision of the rebel Algerian Provisional Govern-
ment to send a delegation to Paris for cease-fire negotiations
has revived hopes for a settlement of the rebellion--now in
its sixth year--even though prospects for an early settlement
are slight. The statement by rebel Premier Ferhat Abbas
on 20 June characterized De Gaulle's invitation as represent-
ing "some progress in relation to his earlier positions," but
still "far removed" from the rebel position. Despite their mis-
givings, the rebels remain committed to a negotiated settle-
ment, and have been under pressure from Morocco and Tu-
nisia to meet with De Gaulle.
Publicly the rebels continue to demand full independence.
Their doubts concerning De Gaulle's ability to assure a free
choice in an Algerian referendum, however, may lead them
to explore the possibility of agreement on an "association"
relationship with France. Certain rebel leaders reportedly
envisage a bilateral agreement concerning some form of
association, to be ratified by a referendum. De Gaulle is
unlikely to recognize the rebels as the sole spokesmen for
Algeria's Moslems, and to date has given no indication that
he is willing to discuss matters other than the terms of a
cease-fire. Despite their differences, both sides will prob-
ably strive to avoid an early breakdown in the talks.
In any negotiations, the rebels will be handicapped by
the need to placate their more intransigent military com-
manders, while De Gaulle's freedom of maneuver will con-
tinue to be limited by the far right. Tension reportedly has
mounted in Algiers following the rebel acceptance.
21 June 60 CENZp-p'ro.ved i7FRela-sW-20-20703/157Oi189340 Page 3
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new instructions
containing a proposed formula for
solving the dispute between the British and Cypriots over dis-
position of British military bases on the island in the event of
ultimate British withdrawal. Archbishop Makarios has insisted
that London give unconditional assurances thatithe bases would re-
vert to Cyprus. The British, however, fear that such assurances
would invite a Cypriot campaigmto force them out.
the new formula has been accepted by
both the Greek and Turkish governments and was to be presented
to Archbishop Makarios within two or three days.
has described the proposed
plan as consisting of the following three steps. First, the British
will send an official letter to Makarios stating that negotiations
over the future of the bases are without purpose as the British
will never leave them. Secondly, Makarios will reply that Cypriots
will not raise the question of British departure but that if the
British were to leave, the bases should revert to the future Cypri-
ot government. Finally, the British will agree with Makarios'
statement, government will exert
pressure on Makarios to accept the plan. Success of the new pro-
posal to remove the "cession issue," which has deadlocked the
Cyprus negotiations for weeks, will depend largely on the tactics
used by the British in presenting the formula to Makarios and on
the degree of pressure Athens may be willing to exert on the
Archbishop.
Other issues will remain even if the question of bases is re-
solved. There has been no agreement on the form of a declaration
on administration of British sovereign areas, on the location of
corridors between Cypriot enclaves in the base areas, or on the
extent of financial aid to be given the new republic by the British.
Communal problems which must be settled prior to independence--
such as implementation of a 7040 ratio between Greek and Turk-
ish Cypriots in the future civil service, also are unresolved. Un-
less all of these problems can be eliminated within the next few
days, it appears unlikely that independence will be possible be-
fore late fall.
_sEGREF
21 June 60 CEsITD Al IKITCI I IrICAIrC MI II I CTIkl Page 4
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CONFIDENTIAL
�111111r.
Austrian Agitation for South Tirolean Self-determination
An influential Austrian editor and publisher, long an ardent
advocate of the South Tirol's cause, has started a campaign to
detach the area from Italy. On 15 June, all three of his news-
papers prominently featured the results of an opinion survey con-
ducted by a West German polling organization reputedly showing
that 82 percent of the German-speaking population in the South
Tirol favored its return to Austria, that only 7 percent favored its
retention by Italy, and that 26 percent would support compatriots
"resorting to force." In a subsequent conversation with an Amer-
ican Embassy official in Vienna, the publisher "as much as ad=
milted" that his objective is self-determination for the South Tirol
and its return to Austria.
Embassy officials believe that Austrian authorities knew in
advance and approved the editor's campaign, feeling it would sup-
port their present demand for full regional autonomy for the South
Tirol under the Italian constitution. [Vienna is expected to reit-
erate this demand in a letter from Chancellor Raab to Rome. The
letter, which will probably declare further bilateral talks useless
but may nevertheless propose a meeting of "confidential represent=
atives" of both sides, is generally believed preparatory. for an
Austrian appeal of the issue to the UN General Assembly:3
Rome's suspicions of Vienna's ultimate intentions will be deep-
ened by this evidence of Austrian public support for self-determina-
tion. Officially, Vienna still bases its case on the 1946 agreement
which confirmed Italian sovereignty over the South Tirol but gave
cultural guarantees to the German-speaking population. Italy is
not likely to grant the South Tirol even regional autonomy and will
strongly oppose any attempt to set up a plebiscite.; The Tambroni
government has recently seemed inclined to propose that the issue
be taken to the International Court in order to forestall an Austrian
appeal to the UN Assembly. 1
21 June 60 CErs'""' IblTI I IklP n' " ' "4"
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CONFIDENTIAL
:we
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
Director, Office of Civil and Defense Mobilization
Director, National Aeronautics and Space Administration
Special Assistant for Security Operations Coordination
Chairman, 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 Political Affairs
The Deputy Under Secretary of State for Political Affairs
The Deputy Under Secretary of State 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
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
Commandant, United States Marine Corps
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
CONFIDENTIAL
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