CENTRAL INTELLIGENCE BULLETIN - 1960/12/22

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02993704
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 15
• Document Creation Date: March 17, 2020
• Document Release Date: March 26, 2020
• Publication Date: December 22, 1960

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22 December 1960
Copy No, C
CENTRAL
INTELLIGENCE
BULLETIN
DICUMENT NO 45-
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22 DECEMBER 1960
I. THE COMMUMST BLOC
USSR-Indor esia--First delivery en route
under $277,000,000 naval aid agreement. W
II. ASIA-AFRICA
Laos--Chinese Communists continue
threats; Phoumi force from Vientiane
reported pursuing Kong Le.
Congo--Situation in Stanleyville explosive.�
III. THE WEST
Portugal-South Africa--Closerrmiliti.ry
cooperation in Africa planned.
Brazil--President-elect Quadros plans 0
neutralist foreign policy.
LATE STEM
�Saudi Arabia--King Saud moves to re-
sume control of government.
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Congo:
Stanleyville
the recent calm there as deceptive, and
reports that an anti-white explosion could take place at any
time. I the economic situa-
tion is "at a dead end;' with food and gasoline in short sup-
ply. anti-American sentiment is strong, and
�that no Europeans are being allowed to leave lest their de=
parture further disrupt the local economy.
Although a representative of the Gizenga regime has been
Warmly received in Cairo, the attitude of Sudan continues to
pose at least a temporary obstacle to UAR or Soviet initia-
tives to provide material aid.
.\\
Sudan 'is avoid-
ing giving us overflight and landing permission" for flights to
the Congo, and that he was having trouble obtaining 7point-
-nents with senior officials.
Colonel Mobutu continues to build up his forces in and
iround Orientale Province, and Congolese officials have hinted
it an attack in late December. Mobutu appears hesitant, how-
aver, and has reportedly asked his Belgian advisers for aid in
procuring more equipment and transport.1
111. 1.11Z
Portugal - South Africa:
Portugal, after several months of cautious explorations,, is mov-
ing toward closer, military cooperation with the Union of South
Africa. The Portuguese apparently envisage an exchange of in-
telligence and the provision of South African logistical assist-
ance to their military forces in Angola and Mozambique. They
remain wary, however, of any moves which might identify Por-
tugal publicly with the Verwoerd government. Lisbon therefore
Instructed its embassy in Pretoria on 14 December to conduct
"at least the first phase" of the projected military conversations
through the Portuguese military attache
72�-
22 Dec 60
DAILY BRIEF jj
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ontinuation of support to the Kong Le/Pathet Lao forces in
aterial and personnel, and c) an increase in the numerical
trength of Pathet Lao forces,j
LIJ appears unlikely that the Communist bloc has decided
o intervene openly with its own identifiable military forces
t this time. A decision on its part to do so in the future, how-
ever, is not precluded and probably would be dependent in part
on the bloc's estimate of its chances of success in achieving a
military or political settlement acceptable to the Communistt7.j
LATE ITEM
*Saudi Arabia : King Saud, who has made sporadic attempts
for more than two years to reassert his authority over the Saudi
government, appears at least for the moment to have succeeded.
He has issued royal decrees proclaiming his "acceptance of the
resignation" of his brother Crown Prince Faysal from the post
of prime minister, his own assumption of that position, and the
replacement of all the other ministers.
The composition of his new ten-man cabinet suggests that
the King had the full support of the influential "liberal" Saudi
princes for his power move; he has named three of them as
new ministers of finance, interior and communications. For
the key post of defense minister, he has selected his favorite
son Muhammad, who had been Chief of his Royal Advisory Council.
The King's appointment of Abdullah Tariki as Oil Minister, to-
gether with the fact that, for the first time, more than half the
ministers are not members of the royal family, may have con-
siderable appeal to the various Saudi elements which have been
eager for some sort of political reform.
At this stage, the King appears to have enough backing in the
military, among tribal leaders, and within the royal family to give
him the upper hand should the ailing Faysal and his supporters
attempt a quick counter move. (Page 6)
22 Dec 60
DAILY BRIEF iv
OK,
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Delivery of Soviet Naval Vesspls to Indonesia
L.Two soviet �submarine cnasers,utowect by a treighter
and a tug, apparently are being delivered to Indonesia un-
der the $277,000,000 naval aid agreement concluded by
Admiral Martadinata during his visit to Moscow this sum-
mer. The four. Soviet ships--out of Vladivostok�were
sighted west of Okinawa on 19 December. The Soviet Union
delivered ships to Indonesia in 1959 from Vladivostok em-
ploying similar methods.3
Previous deliveries of bloc naval units to Indonesia,
under an $85,000,000 agreement, included four destroyers,
two submarines, and eight subchasers. Under the new naval
agreement, Moscow is to provide a light cruiser, two de-
stroyers, four submarines, six minesweepers, eight patrol
craft, ten motor torpedo boats, and an assortment of auxiliary
ships. In addition, amphibious equipment--consisting of land-
ing vehicles and tanks�and artillery are scheduled to be sup-
plied to the Indonesian Marine Corp!J
LA high-level Indonesian mission, including Foreign Min-
ister Subandrio, Air Force Chief of Staff Marshal Suryadarma,
Army Chief of Staff General Nasution, and several ranking
naval officers, is due to arrive in Moscow later this month.
The make-up of the delegation and the apparent initiation of
Soviet naval deliveries to Indonesia suggest principal empha-
sis during the visit will be given to negotiating the air force's
requests of last July for additional Soviet equipment. At that
time the air force asked Moscow to provide two squadrons of
MIG-19 or MIG-21 jet fighters and one squadron of TU-16
jet bombers, as well as ground-to-air and air-to-air rockets.
In addition, General Nasution--who has been thus far reluc-
tant to follow the lead of the navy and the air force in procur-
ing large amounts of bloc materiel�may use this opportunity
to explore again the possibility of accepting large-scale Soviet
arms aid
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Nisi(
Situation in Laos
Communist China's Defense Minister Marshal Lin
Piao has charged the US with "'blatantly interfering by
force of arms" in Laos. In a 21 December greeting hon-
oring North Vietnam's Army Day, Lin Piao pledged "the
utmost efforts to safeguard the Geneva agreements and
put a stop to US imperialism's intervention and aggres-
sion" in Laos. This unspecific threat is almost identical
in phrasing to an official Peiping statement on 14 Decem-
ber and a People's Daily editorial of 16 December. Its
reiteration by Peiping's top military leader�evidence of
the emphasis the Chinese wish to place on their veiled
warnings to the United States--is consistent with the bloc
effort to create an atmosphere of tension and deter support
for Phoumi.
The Soviet Union, in its capacity as co-chairman of
the Geneva Conference, has thus far remained silent on
proposals from Peiping and Hanoi calling for reactivation
of the ICC in Laos and reconvening the 1954 Geneva par-
ticipants. It seems likely, however, that Moscow will soon
respond by formally approaching London with this proposal.
Recent Moscow broadcasts continue to elaborate on al-
leged direct US involvement in the fight for Vientiane and
have also warned of possible open American troop landings
in Laos. Soviet propaganda has carefully pointed out that
Laos is an example of the national liberation movement, that
the struggle for the country will continue, and that Phoumi's
rcal tat_u7 of the capital was a "Pyrrhic victory."
The airlift into Laos from North Vietnam continues, with
both Soviet and North Vietnamese transports participating. At
least four flights by Soviet IL-14s were made to the Vientiane
area on 20 December, and ten more were scheduled for 21 De-
cember. Soviet paradrops were again observed on 21 Decem-
ber about 40 miles north of Vientiane. Between 3 and 20 De-
cember, Soviet transports had been scheduled for 169 flights to
�rop-sEeRET--
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are
Laos, of wrrra at least 100 have been confirmed. North
Vietnamese transports were also active on 20 December
in flights to Na San and Dien Bien Phu, and several North
Vietnamese aircraft were scheduled to make flights to Sam
Neua, Vientiane, and Dien Bien Phu on 21 December. This
is the first time North Vietnamese transports have been
scheduled to fly to Vientiane.
TOP stxuur
No flights were made to Nanning by Chinese Communist
transports on 20 December, and the Chinese Communist
civil transports which had been shuttling between Nanning
and Hanoi were also apparently inactive on 20 December.
The three Soviet AN-12s which left Canton on 20 December
have returned to the USSR, however, six additional AN-12's
have been scheduled from Sverdlovsk to Irkutsk and it is
possible that they may continue on to Peipine_ArdAhence_tAa
ith additional supplies for Laos.
Operations by General Phoumi's forces against the e
Le force were to have begun on 21 December.
commando elements under Major Siho ave
already advanced well up the road from Vientiane to Luang Pra-
bang and expect to engage Kong Le's main forces shortly, about
40 miles north of Vientiane. Soviet aircraft have been observed
dropping supplies to Kong Le in this area, which apparently is
the base for the present regrouping and resupply operations.
Kong Le is said to have two companies of his Second Paratroop
Battalion there plus a reported 600 Pathet Lao troops. Some of
the Soviet-provided howitzers used in the defense of Vientiane
are reported to be in position in the vicinity.
The operational plans of Phoumi's forces call for the ul-
a e commitment of three infantry battalions, plus artillery
and armored support elements. Elements of the First Para-
troop Battalion will also be employed. The contemplated three-
pronged offensive is aimed at dispersing the Kong Le and Pathet
Lao forces into isolated pockets� to be dealt with in later phases
of the operation0
The Boun Oum government is gradually establishing it-
self in Vientiane. Premier Boun Oum's first public pronounce-
ments have been notable for their uncompromising tone in
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NW,
connection with various proposals for mediating the crisis
in Laos. He has, for example, rejected out of hand the
proposal from varying sources for the reactivation of the
ICC for Laos. His information minister has been quoted as
saying that Laos will join �SEATO if it becomes necessary.
22 Dec 60 CENTRAL INTELLIGENCE BULLETIN Page 4
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*me
Brazilian President-Elect Plans "Independent"
Foreign Policy
Cl3razilian President-elect Janio Quadros plans a more
"independent" and neutralist foreign policy after his inaugu-
ration on 31 January.
the latter is "de-
termined to disengage Brazil from economic dependence on
the United States" and intends to reorient economic policy
toward Britain and Europe, where he feels there are now
adequate financial resources. Quadros has reportedly been
assured by British and German bankers that their countries
will grant Brazil loans and economic aisilj
attributes Quadros' plans for a neutralist policy partly
to his belief that this will buy off leftist criticism when he
initiates orthodox fiscal policies, which will be unpopulai23
Cpantas has been mentioned as either a cabinet possibility or
the first Brazilian ambassador to the USSR after diplomatic re-
lations, broken in 1947, are resumed. Quadros, previously la-
beled a "Wall Street lackey" by the leftist press, promised
during the election campaign to re-establish diplomatic rela-
tions with Moscow and to recognize Communist China. Through
Dantas, Quadros reportedly authorized Vice President Goulart�
who visited Moscow from 5 to 14 December--to take the "first
steps" in establishing closer cooperation with the USSR. Gou-
lart had previously planned to visit Communist China, but his
unexpected return to Paris on 14 December was interpreted by
the press as indicating he has abandoned the idea.0.3
CQuadros, who is vacationing in Europe after an eye opera-
tion, still hopes to arrange a meeting of neutralist leaders on
the Yugoslav island of Brioni. After his return to Brazil he in-
tends to make short visits to all Latin American countries, with
the possible exception of Argentina and ParaguavD
--CONFIDENTIAL
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CON/4 ILJEN-1.1AL
-.40e �*iav
King Saud Moves to Resume Control of Saudi Arabian Government
After more than two years of intermittent maneuvering, King
Saud appears to have succeeded at least temporarily in reassert-
ing his authority over the Saudi Government. On 21 December
he issued a royal decree "accepting the resignation" of his brother
Crown Prince Faysal from the post of prime minister, and an-
nouncing that, in accord with Saudi law, all the other ministers
were considered as having also resigned. In subsequent decrees,
the King proclaimed that he personally was assuming the powers
of prime minister, and he named a completely new cabinet.
Saud, now 58 years old, ruled as absolute monarch from
November 1953 until March 1958. During this period he made a
number of political blunders, including a clumsy attempt to have
UAR President Nasir assassinated. He also sanctioned such
lavish royal family expenditures that the country was brought to
the verge of bankruptcy. In March 1958 a coalition of influential
senior Saudi princes forced him to delegate most of his authority
to Faysal, who became prime minister, as well as minister of
foreign affairs, and for a time also functioned as finance minister
and interior minister.
Faysars administration restricted royal expenditures and
restored financial order, but was cautious and slow to move in
Initiating even limited political reforms and economic develop-
ment programs. The King, constantly seeking means of reas-
serting his authority and eager to line up the support of the
"liberal" Saudi princes, as well as the influential merchants
and traders, asserted that he would act much more decisively
In these fields.
The composition of his new cabinet suggests that he now has
the backing of the "liberal" princes. This factor, together with
the adherence of most Saudi tribal leaders and the loyalty of at
least the White Army and Royal Guard Regiment, would appear to
give him the upper hand should Faysal and his supporters attempt
a quick counter-move.
If, however, the King begins to act as ineptly as he did during
his earlier period of rule, he might create, sooner or later, condi-
tions which would not only assure his own disnlacement hut alsn
hasten the overthrow of the monarchy itself.
22 Dec 60
CFAITD A I IkITCI I it-Ickirc DI II I CTIkl
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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
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 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 Treasury Department
The Secretary of the Treasury
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
Atomic Energy Commission
The Chairman
Federal Bureau of Investigation
The Director
National Security Agency
The Director
National Indications Center
The Director
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