CENTRAL INTELLIGENCE BULLETIN - 1960/11/28

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03004640
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 18
• Document Creation Date: March 17, 2020
• Document Release Date: March 26, 2020
• Publication Date: November 28, 1960

.,//1/Z7Z/Z/ZZIVZ/ZZ/ZIWZdr/Z,ZZZIWZ/Z/Z/Z/Z/ZZ/ZZW
Approved for Release: 2020/03/13 C03004640
Neve I *ai a.% n.16 I
Nog
28 November 1960
Copy No. C s-
CENTRAL
I\TELLIGENCE
BULLETIN'
DOCUMEIT N. 2_
NO !N CLASS. Xr
DECLASV77SD
CtkiS, G41..NTiti 1.'3: IS Se
NEXT 4,0111W DATEt
AliT74; Ha 7d.1
10 JUN Fifn
_ VIE WEB;
-TOP-SECRET
p..eprArov.red..7r6cr6refs:....165.6,igrn..co.,3...66.46.4070,
Approved for Release: 2020/03/13 C03004640
TOP SECRET
Approved for Release: 2020/03/13 C03004640
Approved for Release: 2020/03/13 C03004640
'NEP'
28 NOVEMBER 1960
I. THE COMMUNIST BLOC
Hungarian regime determined to complete
agricultural collectivization this winter. 0
Chinese Communist good-will mission to
Burma next January to include several
high officials; visit apparently aimed at
demonstrating China's peaceful intentions
-
in Asia.
IL ASIA-AFRICA
The situation in Laos.
The Congo--Supporters of I190 secure
Katangan President Tshombe's agreement
for conference next month on future of
Congo; entire Ghanaian diplomatic staff
ordered withdrawn from Congo.
III. THE WEST
West German interzonal trade negotiator
resigns because of sharp differences with
Bonn.
�Ecuadorean officials fear "slippage to-
ward Castro" if "guarantor powers" of
Rio Protocol reaffirm validity of treaty
settlement in Peru's favor in Ecuadorean-
Peruvian border dispute.
CXenezuela-leftist opposition party stirs
three days of rioting in Caracas; security
forces take firm measures.
--TELELC-ViOD r
Approved for Release: 2020/03/13 C03004640
p.
r ,
A
Approved for Release: 2020/03/13 C03004640
*IS
141
CENTRAL INTELLIGENCE BULLETIN
28 November 1960
DAILY BRIEF
I. THE COMMUNIST BLOC
Hungary: Party-wide meetings have been conducted in
Hungary to plan the drive for completing agricultural collec-
tivization following the 28-29 October plenum of the Hungar-
ian party's central committee, which ordered the amalgama-
tion of existing cooperative farms and called for the collec-
tivization of the 23 percent of the country's arable land still
under private control. Local press reports indicate shortfalls
In the harvest and a failure to coordinate fall sowing-,both re-
flections of mounting organization and supply problems, a lack
of effective rural party cadres, and passive resistance on the
part of the peasants. (Page 1)
Communist China - Burma: Peiping is planning to make
the good-will visit of Chinese Premier Chou En-lai to Rangoon
in January an unparalleled demonstration of its "peaceful" in-
Asia.
eiping wishes to include Foreign Minister Chen Yi,
Army. Chief of Staff Lo Jui-ching, and several other high offi-
cials among a total of 420 people to be sent. The Chinese will
attend Burma's independence day celebrations on 4 January and
exchange ratifications of the Sino-Burmese border treaty. Chou
may take advantage of the trip to visit other countries in the
area.
H. ASIA-AFRICA -
Laos: ing Savang has refused to act on Souvanna Phou-
ma's proposal that the principal representatives in the Laotian
crisis from Vientiane, Savaanakhet,and the Pathet Lao meetein
I
TOP SECRET
4Approved for Release: 2020/03/13 C03004640r
A
Ar
/ A
. Ilid 'Approved for Release: 2020/03/13 C03004640
TOP SECRET
. .
�
,
Luang Prabang under the King's aegis to form a broad national
union government. While he distrusts Souvanna Phouma, and is
intriguing against him, the King remains unwilling to risk de-
cisive action and continues to wait for a military solution.
The movetnent of Vientiane and Pathet Lao forces north-
ward toward Luang Prabang from Muong Kassy apparently con-
tinues, andVientiane reportedly plans an attack on.ttje royal capital
on 5 December. There is an unconfirmed report that Pathet
Lao units may be advancing on Luang Prabang from Sam Neua
Province to support Vientiane's move4j
(Page 3)
Republic of the Congo: /Three emissaries of the proposed
Ileo government, in an effoYt to exploit the advantage gained
by Kasavubu at the UN, have reportedly secured Katangan
President Tshombe's agreement to hold a round-table confer-
ence next month on the future of the Congo. However, Tshombe
and his associates remain suspicious of all Leopoldville figures;
Tshombe's preconditions for Katanga's reintegration with the
rest of the country are likely to be excessive. t
[The 350-man Ghanaian police contingent, which was in-
volved in last week's battle with Congolese troops. is return-
ing to Accra.
President Nkrumah has also ordered the "temporary" withdra7a1
of the entire Ghanaian diplomatic staff:
(Pag(6)
III. THE WEST
West Germany: West German interzonal trade represent-
ative Kurt Leopold has submitted his resignation to Chancellor �,/
Adenauer as a result of sharp differences of opinion with Bonn c "4
over the forthcoming negotiations for the renewal of the abro-i
gated trade agreement with East Germany. Leopold feels that('
28 Nov 60
VA
DAILY BRIEF
'MP .cFripr'r
AApproved for Release: 2020/03/13 C03004640r A
A
'Approved for Release: 2020/03/13 C03004640
14411B# TOP SECRET
his negotiating position has been compromised by official
disclosures to the press of Bonn's eagerness to resume
the trade talks, and he attributes the� uncooperative atti-
tude recently taken by the East Germans on trade matters
to these revelations. Leopold may also be annoyed by the
presence in West Berlin last week of officials of the West
German Economics Ministry who reportedly made infor-
mal contacts with their East German counterparts, and he
foresees that the negotiations will be handled by the Eco-
nomics Ministry at a higher level than his Trusteeship Office.
A committee of the Bonn cabinet has advised Adenauer that
the time now has definitely come to start negotiations imme-
diately. (Page 6)
Ecuador: [Top Ecuadorean officials have asserted their
fear of a "slippage toward Castro" and of strong anti-US reac-
tions favoring pro-Castro elements in the event of a strong
declaration by the "guarantor powers" reaffirming the Rio- yd)
Protocol of 1942. The treaty provides for the definitive set- '
tlement in Peru's favor in its longstanding :boundary dispute
with Ecuador. The "guarantor powers" are the US, Argentina,
Brazil, and Chile. President Velasco, who has stated fre-
quently since last September that the protocol was null and
void, is reported to have threatened alignment with Cuba in
an effort to win backing for his position in the OAS; Foreign
Minister Chiriboga has implied Ecuador could win Cuban -
Soviet bloc support for its case n the UN.
Zeuaclor has already solicited and received the
"sympathy" of Cuba for its attitude toward the treaty, which
Peru seeks to enforce to the letter.
Peruvian Prime Minister Beltran told the US charge in Lima
on 10 November that if the US qualified its support of the pro-
tocol he would be brought to the verge of resignation.
(Page 7) (Map)
28 Nov 60
DAILY BRIEF lii
TOP SECRET 2
,Approved for Release: 2020/03/13 C03004640r
A
A
Approved for Release: 2020/03/13 C03004640
*Pr
*Venezuela: The three days of rioting in Caracas,
which continued late on 27 November, were touched off by
an illegal strike of Caracas telephone workers on 25
November. The strike itself was reportedly settled less
than 24 hours after it began but students and other pro
Castro opposition elements joined the agitation of the
strikers and continued rioting, possibly with the organi-
zational assistance of a dangerous Cuban student agitator
who had been scheduled to arrive in Caracas on 22 No-
vember. The union of telephone workers is reportedly
controlled by the Democratic Republican Union (ORD)
the leftist pro-Castro party which withdrew from the three -
party coalition government on 17 November and was omitted
from President Betancourt's reorganized cabinet on 21 No-
vember. The URD has been deinanding a leftist reorientation
of the Betancourt regime, and may be expected to continue
agitation against the government. The army and the govern-
ment security forces, however, appear to be actively
supporting the regime and no widespread turmoil has been
reported outside the capital.
28 Nov 60 DAILY BRIEF
TOP SECRET
4Approved for Release: 2020/03/13 C03004640
A
Approve-a-lo-r-lele-THia/s0S/13 C03004640
Niue
Hungarian Regime Drives to Complete
Agricultural Collectivization
The Kadar regime recently announced axlecisioniof
28-29 October to complete agricultural collectivization
this winter,despite the poor situation in the countryside
as revealed by recent Hungarian government and press
comment. The party daily Nepszthadsag rewitzidtthat the
fall sowing of grain was 10 percent less than in 1959, and
that 35 percent of the corn and 22 percent of the sugar beet
crops had not been harvested, despite the use of army and
police troops in the fields. A week earlier, Minister of
Agriculture Pal Losonczi expressed concern over delays
in fall field work and implied that farm managers and local
government units were failing to make use of agricultural
machinery made available to them in the past two years.
The effects of such shortcomings, coupled with reports of
widespread illegal slaughter of livestock by the peasants,
will necessitate increased imports and retard the achieve-
ment of economic plans.
The failure to complete the sowing of winter grains and
to coordinate field work reflects mounting organizational
and supply problems and the passive resistance of the peas-
ants�developments which are largely an outgrowth of the
collectivization campaign of the past two winters. Similar
delays last year are considered the chief reason for the re-
ported 8- to 10-percent decline in 1959 grain production,
despite increased acreage sown to grain.
The Kadar leadership has achieved a nominal collectivi-
zation of 77 percent of the arable land by major drives in
1958 and 1959 but has still been unable to recruit effective
rural party leadership. While roughly four fifths of the farms
had party organizations in February of this year, they were
mainly composed of farm managers, administrative person-
nel, and professional agronomists "on loan" to the coopera-
tives, and they neither stimulated peasant interest nor stemmed
the flight of peasant youths to the cities. The regime has also
CONFIDENTIAL
28 Nov 60
r`CkITD A I IkITGI I i"ek,..iir�c DI III ETIL0.1
Approved for Release: 2020/03/13 C03004640
Page 1
Approved for Release: 2020/03/13 C03004640
Now *we
resorted to stopgap measures to strengthen rural party
work by utilizing officials of the Patriotic Peoples' Front
(PPF), the Communist youth organization (ICISZ), and the
trade unions. During the past summer, 300 full-time func-
tionaries from the party headquarters and the Budapest
municipal party organization were sent on two-week tours
to the farms to hold political courses and work alongside
the peasants in the fields. In a tip-off to the type of inten-
sive agitation work to be conducted this winter, the Society
for Scientific Education has announced that it is preparing
to send 8,000 "lecturers" to the countryside in the next
three months.
The regime has offered the peasants a series of induce-
ments, largely monetary, to simulate livestock breeding,
grape growing, farm construction, and the purchase of ma-
chinery, stock, seeds and fertilizers. It has invested 17
billion forints-40 percent more than was allocated by the
draft Three-Year Plan for 1958-60. This redirection of
funds to agriculture has forced a slowdown in other sectors
of the over-all economic program.
CONFIDENTIAL
28 Nov 60 CENTRAL INTELLIGENCE RULLFTIN page 2
Approved for Release: 2020/03/13 C03004640
Approved for Release: 2020/03/13 C03004640
INOILI11.0A %ILA A
411001 NNW
Situation in Laos
EKing Savang has refused to act on Souvanna Pnouma's
proposal that the principal representatives from Vientiane,
Savannakhet, and the Pathet Lao meet in Luang Prabang un-
der the King's aegis to form a broad national union govern-
ment. The King is reliably reported to have replied infor-
mally through an intermediary that he could do nothing use-
ful. He also said that he regretted that Vientiane troops
were marching on Luang Prabang and that Souvanna had
stipulated in advance that General Phoumi 'and Prince Boun
Oum would be excluded from the proposed coalition govern-
ment. Although the King is unsympathgtic to the Souvanna
regime and is engaged in backstage intrigues against it, he
appears unwilling to run the risk of decisive action and con-
tinues to wait for a military solution.
-Vientiane troops apparently continue to advance north-
ward. from Muong Kassy toward Luang Prabang.
Vientiane plans an attack on the
royal capital on 5 December. There is a report that 1,000 ad-
ditional troops were to leave the Vientiane area on 27 Novem-
ber to join in the operation against Luang Prabang. The US
military attach�n Vientiane comments that the withdrawal of
this force would leave the defense of Vientiane almost entirely
to the Pathet Lao. An unconfirmed report states that Pathet
Lao troops in Sam Neua Province are moving westward to as-
sist in the operation against Luang Prabang.
Addressing a mass rally in Vientiane on 26 November,
Souvatna reportedly expressed confidence that he and Phoumi
could agree on a political solution but added, "If we are thwarted
we will have to fight.. but we will do this in case of dire neces-
sity only." Souvanna meanwhile is considering proceedings fof
SECRET
28 Nov 60 Approved for Release: 2026/03/13 o0301:74640
Page 3
Approved for Release: 2020/03/13 C03004640
Num/ Note
--t
Uhe impeachment of National Assembly deputies who are collab-
orating with the Savannakhet rebels. Twenty one of the assem-
bly's 59 deputies are presently absent from Vientiane.
Within the past few days, the military commander of Phong
Saly Province, Colonel liham Ouane, has been the object of
approaches by both the rightists and Vientiane. On 25 No-
vember, Khaxn Ouane informed Luang Prabang that he would
follow the orders of the legal government in Vientiane, but
�that his position was essentially neutral and he would not
engage in any action against Luang Prabang.i
LThere are reports that a coup planned against the Sou-
vanna government by Laotian Army officers in the Vientiane
area has been uncovered. As a result Col. Kouprasith, com-
mander of the Second Military Region, is under surveillance,
and there has been a reassignment of the command for the
defense of Vientiane. Coup plotting by other officers report-
edly is continuing, however:1
Oath Peiping and Hanoi have responded enthusiastically
to Souvanna's overtures for a good-will mission and report-
edly have extended invitations for visits by a Laotian delega-
tion in Decembenj
28 Nov 60 rEk rrn A I 1k rr��� I 10.�����kio.����. rt. �� � �����k �
Approved for Release: 2020/03/13 C03004640 Page 4
Approved for Release: 2020/03/13 C03004640
'4.0' TOP SECRET Itior
Situation in the Con g."
Three emissaries at the proposed government of
Joseph Ileo, who was named by President Kasavubu in
September to succeed Lumumba, r,eportedly, have se-
cured Katangan President Tshombe's agreement to hold
a round-table conference next month on the future of the
Congo. The Ileo group, which probably is acting at the
behest of Kasavubu, appears to be moving to exploit the
advantage gained, by Kasavubu at the UN. If the group can
secure Tshombe's participation in a round-table conference,
Lumumba's claim to be the only force which can hold the
Congo together will be undermined. However, Tshombe-
and his associates remain suspicious and contemptuous of
all Leopoldville figures, and are likely to set excessive con-
ditions for Katanga's reintegration with the rest of the coun-
Meanwhile, the 350-man Ghanaian police contingent,
which was involved in last week's battle in Leopoldville with
Congolese troops, is returning to Accra.
President Nkrumah has also or-
dered the entire Uhanaian cuplomatic staff to withdraw "tem-
porarily" from Leopoldville and has asked the UAR to protect
Ghana's interests.1
TOP SECRET
28 Nov 60 rPkITD A I IKITM I iir-l=mec RI III CTIKI Page 5
Approved for Release: 2020/03/13 C03004640
Approved for Release: 2020/03/13 C03004640
West Genital-1 Interzonal Trade Negotiator teResign
West German interzonal trade representative Kurt Leo-
pold has submitted his resignation to Chancellor Adenauer in
protest over revelations by Bonn officials of the West Ger-
man negotiating position in forthcoming talks to renew the
abrogated trade agreement with East Germany. Leopold told
American officials in Berlin that Bonn had shown "its trump
cards" to the East, which now has the Federal Republic "eat-
ing out of its hand." He attributes the East Germans' recent
uncooperative attitude on trade matters to these disclosures.
In a press interview on 12 November, Adenauer had stated
that Bonn would be flexible on new negotiations, which if con-
ducted intelligently might achieve some advantage for Berlin
access. The West German press has since reported Bonn's
fears that a break in trade would give the Ulbricht regime a
pretext to move against Berlin access and Bonn's eagerness
to resume negotiations without necessarily making the lifting
of East German restrictions a precondition of a. new agree-
ment.
Leopold has also had sharp differences of opinion with
officials of West Germany's Economics Ministry and he may
resent the presence in Berlin last week of certain of these of-
ficials who reportedly made informal contact with their East
German counterparts. He foresees that negotiations will be
handled by the Economics Ministry at a higher level than his
Trusteeship Office. The American Embassy in Bonn was ad-
vised on 23 November, however, that the Trusteeship Office
would initiate negotiations with the East Germans on 29 No-
vember, but with two high-ratnking Bonn officials "sitting in
the next room" to give advice to the West German negotiators,
presumably Leopold or his deputy.
An "economic committee" of the cabinet advised Adenauer
last week that the time has come to start negotiations imme-
diately. Adenauer has deferred his decision until 28 Novem-
ber, when he is scheduled to see Leopold in Bonn to discuss
trade problems and Leopold'F.; resignation and at which time a
decision will probably be taken on proceeding with the negotia-
tions.
-CONFIDENTIAL-
28 Nov 60
e"ewrrn Al IkITEI I 1"Ekle`e DI iii C711�1
Approved for Release: 2020/03/13 C03004640
Page 6
Approved for Release: 2020/03/13 C03004640
'efore
ECUADOR - PERU BOUNDARY DISPUTE
QUITO*
ECUADOR
.Guayaquil
COLOMBIA
Area of Inset
BRAZIL
PERU
Trul lily
.........Undemarcated boundary
n Disputed area claimed by Ecuador and ceded to Peru
by the 1942 Rio de Janeiro Protocol
STATUTE MILES 400
31391
-t
Approved for Release: 2020/03/13 C03004640
Approved for Release: 2020/03/13 C03004640
A A 1PSSA.J A
Peru-Ecuador Boundary Dispute
fT op Ecuadorean' officials are expOssing their fear of
an flThr�e in pro-Castro influence and strong anti-US re-
actions in the event of a strong declaration by the "guaran-
tor powers" reaffirming the Rio Protocol of 1942. The
treaty provides for the definitive settlement in Peru's fa-
vor in its long-standing boundary dispute with Ecuador.
President Velasco, who has frequently stated since taking
office last September that the protocol was null and void, is
reported to have threatened to align Ecuador with Cuba to
win support for his position in the Organization of American
� States, Foreign Minister. Chiriboga, who has made a num=
ber of similar denunciations of the protocol, including one
before the UN General Assembly last September, has im-
plied to Ambassador Bernbaum that Ecuador could win Cu-
ban and Soviet bloc support for its case in the UN.
Ecuador has
solicited and received the expressed sympathy of Cuba for its
attitude toward the treaty, which Peru seeks to enforce to the
letter because of the favorable award of territory disputed for
more than a centuryj
he guarantor powers are the US, Argentina, Brazil, and
Chi e. The current meeting of the representatives of the guar-
antor powers in Rio de Janeiro and the planned declaration on
the protocol came as a result of Peru's request and Ecuador's
provocative campaign against its validity. Argentina, Brazil,
and Chile have expressed concern over Ecuador's incitement
of the issue, which arouses extreme nationalistic sentiments
in Peru and Ecuador. Both governments have virtually unan-
imous public support for their equally inflexible positions, and
any retraction or concession by either would be likely to threat-
en that government's stability. Peruvian Prime Minister Beltranj
28 Nov 60 CFKITPAI IKITFIlitezpkirp RI II I FTIKI
Approved for Release: 2020/03/13 C03004640
Page?
Approved for Release: 2020/03/13 C03004640
'411,
Decently warned Charge 'Neal that any qualification of the
US endorsement of a guarantor declaration on the validity
of the protocol would bring him to the point of resignation.
Officials in both Peru and Ecuador appear to be resorting
to threats in order to fortify their respective positions:3
Cpro-Castro elements in Ecuador are relatively strong
and include anti-US Minister of Government Araujo, the po-
litically prominent mayor of Quito, possibly the leftist min-
ister of education who recently returned from an official
visit to Czechoslovakia to seek economic aid, a potentially
strong pro-Communist student organization, the Communists,
a number of prominent intellectuals, and probably the major-
ity of the Socialist party. Araujo recently permitted the return
to Ecuador of the representative of Castro's controlled inter-
national press agency who had been expelled by the former
conservative r7ime.
�TOP�SECRET_
28 Nov 60 tcpl-pkrom-v7dA forIRe""l7a1sIen-2-0.20/03/1-31 6610-6464o Page- 8
Approved for Release: 2020/03/13 C03004640
Ne CON
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
CONFIDENTIAJ
Approved for Release: 2020/03/13 C03004640
z(z"d