CENTRAL INTELLIGENCE BULLETIN - 1960/08/16

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03185153
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 18
• Document Creation Date: March 17, 2020
• Document Release Date: March 26, 2020
• Publication Date: August 16, 1960

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TOP SCRLT
3.3(h)(2)
16 August 1960
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CENTRAL
INTELLIGENCE
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LATE ITEM
*Laos: The Ambassador reports that, although motions
are being made for the legal establishment of a new govern-
ment, the disintegration of power will be complete and there
will be no responsible authority in Vientiane able to enforce
its rule. He adds that leaflets have just been dropped on
Vientiane announcing that General Phoumi intends to retake the
city by force. He is seriously considering the immediate
evacuation of dependents if, and as soon as the c o eration of
the Kong Le coup group can be secured.
A
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16 AUGUST 1960
I. THE COMMUNIST BLOC
New evidence of Sino-Soviet dispute.
II. ASIA-AFRICA
Laos--Broadly based coalition govern-
ment expected to be formed by Souvanna
1?houma.
Congo--Lumumba apparently has avoided,
Immediate internal crisis.
Syrian delegation to visit USSR to sign
contracts for major development proj-
ects.
Thai foreign minister asserts trend to-
ward neutralism inevitable in Thailand. 0
Turkish ruling committee decides to con-
tinue policy orientation toward NATO. LS)
Afghan-Pakistani tensions will increase
as result of downing of two Pakistani
fighters in Afghanistan.
Arab governments reacting strongly to
cuts in posted prices for Middle East
crude oil.
I. THE WEST
�Eighth national congress of Cuba's Com-
munist party likely to be demonstration
of international Communist solidarity�
with Castro regime.
LATE ITEM
@South Korean prime minister nominated.
4iLiP74=4IrVw7""
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CENTRAL INTELLIGENCE BULLETIN
16 August 1960
DAILY BRIEF
I. THE COMMUNIST BLOC
*Communist China - USSR:
Khrushchev is reported to
have attacked Mao Tse-tung, comparing him to Stalin as one
who formulates theories without coming into contact with
events in the modern world. The Chinese delegate countered
by calling Khrushchev a "revisionist" who is creating illusions
about imperialism and underestimating its real nature.
Peiping also reportedly refused to accept
Soviet missile bases in China unless they were under Chinese
control. (Page 1)
II. ASIA-AFRICA
Laos: Premier-designate Souvanna Phouma is expected
to form a broadly based coalition government which will prob-
ably include some members of the ousted Somsanith govern-
ment. Souvanna is reported to have told the Indian ambassador
that the new cabinet will not contain any military figures, and
that the Ministry of Defense will be returned to civilian con-
troL Souvanna will probably exercise close personal supervi-
sion over foreign affairs and defense matters, in line with his
often-expressed view that if the situation in Laos is to be sta-
bilized, a neutral policy and the reduction of the army's role in
Internal affairs are necessary.
Somsanith and most of the Luang Prabang contingent of his
ousted government are in Vientiane, where they are probably
participating in thtxonsultations looking to the formation of a
new government. j.Qiie exception is ex-Foreign Minister Itham-
pha.n Panya, who reportedly has gone to southern Laos to join
General Phoumi. The latter is not known to have abandoned
his plans to force a return to the status quo ante
Meanwhile, the Kong Le group gives little sign as yet of re-
laxing its military grip on Vientiane and may attempt to hold on
until a government to its satisfaction receives assembly approval.
(SECRET NOFORN) (Page 2)
-T-GP�SEeRET
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Congo: Eew moves planned by Lumumba to bolster his in-
ternal position have art authoritarian character. These report-
edly will include the suspension of judicial procedures in favor
of trial by military tribunal and passage of a law requiring that
licerises for newspapers and periodicals be renewed every two
Apfhs'A major internal crisis for Lumumba appears to have
en averted by postponement of the Abako party's convention
cheduled for 13 August, at which the Abako had been expected
to declare the lower Congo region independent of the Lumumba
government. Lumumba also may avoid an early showdown con-
cerning the political status of Katanga in the expectation that a
scheduled meeting of independent African states in Leopoldville
from 25 to 30 August will take a strong stand in favor of a uni-
fied Congo.
e,UN Secretary General Hammarskjold on 15 August summoned
a new meeting of the Security Council following Lurnumba's charge
that the Congo had "lost confidence" in Hammarskjold. In an ef-
fort to retain the propaganda initiative, Lumumba also called for
the dispatch of a 14-nation UN commission to oversee the with-
drawal of Belgian troop, (Page 4)
UAR-USSR: A Syrian delegation is scheduled to leave for
the USSR within the next few days to sign contracts for several
major development projects under the $150,000,000 line of credit
extended by Moscow in 1957. Reportedly included is Soviet con-
struction of a high darn on the Euphrates River. Soviet activities
in Syria on this and other projects have so far been largely lim-
ited to preparatory surveys, although the satellite countries have
carried out some smaller projects. Conclusion of this new series
of construction contracts is in line with Moscow's current efforts
to re-establish close political ties with the UAR.
(Page 5)
Thailand: Vihal Foreign Minister Thanat Khoman is giving
e impression that a trend toward neutralism in Thailand is in-
vitable. In a recent conversation with the Chinese ambassador
n Bangkok, he argued that neutralist and even Communist senti-
ent is growing rapidly in Thailand because of the continued suc-
cess of neutral governments, particularly Cambodia, in obtaining
16 Aug 60
DAILY BRIEF ii
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conomic assistance from both Communist and non-Communist
sources. He claimed that American economic assistance pol-
icies are fostering the attractiveness of "Sihanouk-type" neu-
tralism and predicted that it would ultimately be adopted through-
out Southeast Asia. He cited the Laotian COM) as one of the cur-
rent indications of this trend?
(Page 6)
Turkey:'embers of the ruling committee, including Gur=
sel and Turkes, are reported to have held conferences in Istan-
bul recently during which Turkey's membership in NATO was
discussed.
the view prevailed that
Turkey should continue to orient its foreign policy, toward NATO,
despite the argument by some members that Turkey has much
to gain from leaving NATO. Other reports from Ankara state
that the provisional government will soon ask the United States
to reduce the number of its military personnel in Turkev-.7
Ivo
Afghanistan-Pakistan: Afghan-Palistani'terisions will in-
crease sharply following the forcing down of two Pakistani
"Fury" fighters at Kandahar. inside Afghanistan. The Afghan
Government has stated the planes were based near Peshawar.
The incident will harden attitudes on both sides and prevent any
improvement of relations in the near future. Kabul, and prob-
ably Moscow, will exploit the incident as "proof" of Pakistan's
aggressive intentions and may link the Pakistani incursion with
US military support for Pakistan. (Page 7)
*Middle East Oil: Arab governments are reacting strongly
to Esso Export's 9 August cut in posted prices for Middle East
crude oil of 4 to 14 cents per barrel. Although other companies
have not yet reduced their crude-oil postings, Shell and British
Petroleum Company have already cut prices of oil products.
Further, cuts in crude prices appear certain. The Kuwaiti Gov-
ernment has just asked Abdullah Tariki, Saudi oil administrator,
to call an emergency meeting of all Arab oil producers for a
16 Aug 60
DAILY BRIEF iii
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� conference on oil profits and some form of world-wide market-
� sharing arrangements, A major cut in crude prices is expected
in Venezuela, even though the minister of mines and hydrocarbons
has argued for cutting production rather than prices.
III. THE WEST
Cuba: The eighth national congress of the Popular Socialist
(Communist) party of Cuba opens on 16 August with the attend-
ance of relatively high party officials from France, Italy, and
most countries of the Sino-Soviet bloc. The congress, the first 6
since 1952, was apparently scheduled to coincide with the OAS
foreign ministers' meetings in Costa Rica this week and is likely
to be a demonstration of international Communist solidarity with
the Castro regime in its "struggle against American imperialism."
(Page 8)
LATE ITEM
*South Korea: Kim To-yun, who has been nominated by newly
elected President Yun for prime minister of South Korea, probably
will need the support of independents and former Rhee elements to
win lower-house approval. Kim, a leader of the right-wing faction
of the majority Democratic party, is strongly opposed by Chang
Myon, titular party chief who controls approximately half the Dem-
ocratic members of the House of Representatives. Exclusion of
Chang's supporters from the new cabinet would widen the intraparty
breach and could lead to government instability.
16 Aug 60
DAILY BRIEF iv
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New reports continue to indicate that a residue of bitterness
between Moscow and Peiping has been left over from the Bucharest
congress in June.
IChrushchev attacked Mao personally at a closed session,
comparing him to Stalin and alleging that the Chinese leader had no
idea of the present international situation. The Chinese delegate,
retorting angrily that Khrushchev was a "revisionist," declared,
"We have no trust in your analysis of the world situation." Khru-
shchev is said to have termed the breach between the two countries
extremely serious.
An 82-page document circulated by the Russians at the congress
presented a detailed criticism of Chinese actions and declarations.
It charged that the Chinese underestimated the dangers of local wars
and that their hostile policy toward India had provoked anti-Commu-
nist,reaction throughout Southeast Asia. The document scored Pei-
ping for refusing to join in common defense proposals for the estab-
lishment of missile bases and radar detection units in China, for op-
posing Moscow's gradualist strategy in underdeveloped countries like
India, Indonesia, and Egypt, andforbringing criticism of the Soviet
party into the open.
Since the Bucharest congress, which was followed by a Soviet
party plenum that condemned "left-wing sectarianism" and "narrow
nationalism;' Moscow has taken the ideological initiative against
Peiping. A long Pravda article of 7 August accused "leftist phrase
mongers" of departing "absolutely" from Marxism in their eagerness
to advance world revolution by means of war. Izvestia has termed
Peiping's interpretation of Lenin a "blasphemy" and called other
points of the Chinese position "absolutely absurd."
The Chinese, comparatively taciturn since the congress, re-
plied to the Soviet charges in a 13 August People's Daily editorial.
It asserted that "modern revisionists" were spreading calumny and
slander against China and were "apologists for imperialism." The
failure of the Chinese to attend the Orientalist congress currently
meeting in Moscow may reflect Peiping's rancor.
The Russian-language magazine of the Sino-Soviet Friendship
Society has apparently suspended publication. According to the Yugo-
slav press, a mass exodus of Soviet specialists from China is under
way, but this report is unconfirmed.
SECRET
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Situation in Laos
Laotian Premier-designate Souvanna Phouma will probably
try to form a broadly. based "national unity" government which
may range from such left-wing neutralist figures as Bong Souva,n-
navong and Santiphab party leader Quinim Pholsena to some mem-
bers of the ousted Somsanith government. Souvanna is likely to
draw heavily on his own party--the Rally of the Lao People (RLP)--
as a roughly representative middle ground between left-wing ele=
ments and the strongly anti-Communist Committee for Defense of
National Interests (CDNI). The CDNI, with its strong influence in
the army. through General Phoumi, may go into a period of eclipse_
the new cabinet will not include any military figures and that the
Ministry of Defense itself will be placed under civilian control.
The defense portfolio in the two previous governments had been
held by Generals Sounthone and Phoumi, respectively, both of
whom were CDNI leaders. In addition, ex-Premier. Somsanith
has stated, presumably on the basis of the exchanges which led
to his resignation, that one of the first acts of the new government
will be the reorganization of the general staff. Souvanna has long
felt that the army was playing a disproportionate role in the cen-
tral government's efforts to stabilize the countryside, and he can
be expected to exercise close policy guidance over defense mat-
ters. He will also undoubtedly devote much attention to foreign
affairs, in line with his view, that strict neutrality is the only feas-
ible policy for Laos;)
omsanith and most of the Luang Prabang contingent of his
ousted government now are in Vientiane and are presumably par-
ticipating in the consultations looking to the formation of the new
government. One exception is ex-Foreign Minister Khamphan Pan-
ya, who reportedly is joining General Phoumi in southern Laos
and who, along with Phoumi, has probably been a major target of
the forces supporting the Vientiane ,coup.. Phoumi, meanwhile,
has indicated no abandonment of his plans to undo the coup by mil-
itary force.
The Kong Le coup group gives little sign as yet of relaxing its
military grip on Vientiane despite the fact that its immediate aims
-SECRET--
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ANN,
appear largely to have been attained. Ever since negotiations
for a settlement began, this group has been deeply suspicious
of trickery on the part of the Somsanith government. Kong Le
may keep control of Vientiane until 4 government to his sartis-
f action receives assembly approval:,
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The Situation in the Congo
Postponement by the Abako party of a convention originally
scheduled for 13-16 August appears to have averted a major inter-
nal crisis for Congolese Premier Lumumba, The Abako on 7 Au-
gust had passed a resolution of no confidence in the Lumumba
government, and the convention reportedly was to have been the
occasion for the Abako to declare the lower Congo region independ-
ent of the central government. Although the reason for the post-
ponement is unclear, it may have resulted from pressure by Lu-
mumba on Abako leader and Congo President Joseph Kasavubu.
With Kasavubu seemingly unwilling to oppose Lumumba, the
focal point for anti-Lumumba activity may once again become the
Congo Senate, whose moderate president, Joseph Ileo, has become
Increasingly critical of the premier. The Senate, which has been in
adjournment since 22 July, is scheduled to reconvene on 16 August.
he Lumumba government continues to implement measures
designed to suppress internal opposition. These include the sus-
pension of judicial procedures in favor of trial by military tribu-
nals and passage of a law requiring that licenses for newspapers
and periodicals be renewed every two months. Congolese officials
earlier, had closed down the facilities of the Belgian and French
news agencies in Leopoldville3
Lumumba may avoid an early showdown concerning the polit-
ical status of Katanga in anticipation that a scheduled meeting of
independent African states in Leopoldville from 25 to 30 August
will take a strong stand in favor of a unified Congo.
Secretary General Hammarskjold on 15 August summoned
a new Security Council meeting--expected to be held Wednesday or
Thursday--following Lumumbais charges earlier in the day that the
Congo had "lost confidence" in Hammarskjold. In an effort to retain
the propaganda initiative, Lumumba also called for the dispatch of a
14-nation UN commission--Ghana, Guinea, Tunisia, Morocco, Ethi-
opia, the UAR, Sudan, Ceylon, Liberia, Mali, Burma, India, Af-
ghanistan, and Lebanon�to oversee the withdrawal of Belgian troops1
�SECRET-
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Contracts. With the USSR for Major Development Projects. in Syria
Moscow is moving to implement its $150,000,000 economic aid
agreement signed in 1957 with Syria. The USSR has agreed to pro-
ceed with work on a Euphrates River high dam and other major de-
velopment projects. during nego-
tiations held this spring in Damascus, Soviet negotiators hesitated
to make a commitment on the dam project, claiming it was first
necessary for the UAR and Iraq to reach an understanding on the
division of the river's waters. At that time, Moscow also was nego=
tiating with Baghdad concerning the construction of a dam on the
Euphrates, for which Soviet technicians currently are conducting
preliminary studies.
Under the line of credit to the Syrian region, the Soviet Union
probably will construct a railroad from Aleppo to Qamishliye, in
northeastern Syria. the
USSR may also build railroads connecting Latakia with Homs and
possibly Aleppo.
In addition, Moscow apparently will undertake the second stage
of its geophysical surveys, calling for oil and mineral exploration
in northeastern Syria. Soviet technicians completed the initial sur-
veys under this project earlier, spending almost a year preparing
a detailed map of the region based on aerial photographs taken by
Soviet aircraft.
Although Soviet economic aid activity in Syria has been largely
limited to surveys, the European satellites have constructed a num-
ber of small enterprises, including a Czech oil refinery at Horns in
1959 which Prague has since agreed to expand.
Conclusion of new contracts for major developmental projects
� in Syria, where economic conditions remain critical, follows a se-
ries of other recent Soviet moves aimed at re-establishing close
political ties with the UAR.
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Thai Foreign Minister Foresees Neutralist Southeast Asia
i-Foreign Minister Thanat Khoman is giving the impression
that he accepts as inevitable a trend toward neutralism in Thai-
land. In a recent conversation with the Chinese ambassador to
Bangkok, Thanat argued that American aid policies in Southeast
Asia, and particularly Cambodia, were making neutralism in=
creasingly attractive. Under present circumstances, neutrals
could ask and obtain aid from both Communist and non-Commu-
nist sources, whereas allies of the United States, cut off from
bloc aid, were taken for granted and required to make "heavy
sacrifices,";
�.Thanat's discussion is additional evidence of Thailand's grow-
ing dissatisfaction and concern over its relations with the United
States. Most recently the Thai Government has voiced fear that the
United States would yield to Cambodian leader Sihanouk's "black-
mail" requests for increased arms aid. Bangkok has warned that
such a move by Washington would force Thailand to reconsider its
foreign policy. In May, when the United States announced it would
provide India with 1,000,000 tons of rice and 16,000,000 tons of
wheat under a four-year PL-480 sales agreement, Thanat was so
incensed that he threatened to boycott the 1960 SEATO foreign min-
isters' meeting in Washingtocj
hanat argues that the Laotian situation is an indication of South-
east Asian neutralist trends and that, unless American aid policies
are changed to favor allies over neutrals, the whole Southeast
region may ultimately adopt a "Sihanouk type" of neutralism.
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Pakistani Fighters Forced Down Inside Afghanistan
Afghan-Pakistani tensions presumably will increase sharply
following the forcing down of two Pakistani "Fury" fighters in-
side Afghan territory. The two British-made piston aircraft
probably were overflying Puishtoon tribal areas inside the Afghan
border when intercepted by Afghan MIG-17 jet fighters and were
then forced to proceed to Kandahar. The Afghan Government
has stated that the planes had taken off from Miram Shah air-
field, in the Pakistani frontier region south of Peshawar,
Kabul and probably Moscow are likely to exploit the inci-
dent as "proof" of Pakistan's aggressive intentions and may link
it with US military support for Pakistan. The Afghans have been
emphasizing since May that the U-2 had taken off from Peshawar
on its 1 May flight, attacking this as evidence of "imperialist'
support for Pakistan's "oppression of occupied Pushtoonistan."
They now may try to draw comparisons between the two inci-
dents. Kabul's propaganda will probably reach a high pitch
while Afghanistan's tribal chiefs are gathered in the capital for
the national independence celebrations in late August.
Afghan Prime Minister Daud may privately welcome the
incident as demonstrating Afghanistan's improved defensive
capability resulting from his policy of accepting Soviet military
assistance. Pakistan, on the other hand, now may feel obliged
to find a way of demonstrating that it remains a stronger military
power than Afghanistan.
-CONFIDENTIAL
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Cuban Communist Party Congress to Be Attended by Strong
Delegations from Abroad
The eighth national congress of the Popular Socialist (Com-
munist) party of Cuba opens on 16 August. The congress, the
first since 1952, had been set for last month and was rescheduled
only recently, suggesting that it was timed to coincide with the
OAS foreign ministers' meetings in Costa Rica this week. The
congress is likely to be used as a demonstration of international
Communist solidarity with the Castro regime in its "struggle
against American imperialism. " Attendance of Communists from
the Sino-Soviet bloc at the Cuban Communist meeting is likely to
encourage the apparent willingness of most American governments
to condemn "extracontinental intervention" in the affairs of the
western hemisphere.
Most of the Sino-Soviet bloc countries will be represented by
relatively high-level delegations. The USSR, Communist China,
Poland, East Germany, Bulgaria, Hungary, and North Korea are
sending central committee members, journalists, and persons
skilled in agitation and propaganda techniques. Rumors that the
bloc delegations would include top party officials have not been
borne out as yet. Paul Verner, candidate member of the East Ger-
an politburo, is the highest rsaing bloc party official known to
have arrived for the meeting. Emikhail Suslov, secretary of the
Soviet party central committee, reportedly was to attend, but the
Cubans have been advised that it will be inconvenient for him to
do so,IJacques Duclos, second-ranking official of the French party,
and Vaio Spano, a member of the Italian Communist party central
committee, arrived in Havana on 13 August.
The foreign Communist delegations undoubtedly will use this
opportunity to strengthen the Communist position in Cuba with the
aim of using that country as a base for further penetration in Latin
America.
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CONFIDENTIAL
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
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