CENTRAL INTELLIGENCE BULLETIN - 1960/06/07

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03189330
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 15
• Document Creation Date: March 17, 2020
• Document Release Date: March 26, 2020
• Publication Date: June 7, 1960

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INTELLIGENCE
7 June 1960
Copy No. C 6 S
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7 JUNE 1960
I. THE COMMUNIST BLOC
II. ASIA-AFRICA
Indications- seen in South Korea of rgt
betwden.acting President Huh Chung ind
Defense Minister Yi Chong-chan.
New Laotian cabinet wins assembly ap-
proval; real power in government is
probably the defense minister, General
Phoumi.
Ankara continues tense, with air of anx-
iety and concern evident both within and
outside provisional government.
King Saud grants oil refining and market-
ing concession in western region of Saudi
Arabia to two of his sons; Aramco pro-
tests conflict with its concession agree-
ment. 0
UAR actively intervening
in Lebanon to influence elections there
starting next Sunday; election period may
Lie__niarici,d by violence.
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CENTRAL INTELLIGENCE TIN .,.
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7 June 1960
DAILY BRIEF
I. THE COMMUNIST BLOC
IL ASIA-AFRICA
(South Korea: There are indications that a rift may be
developing between acting Chief of State Huh Chung and
Defense Minister Yi Chong-chan because of Huh's failure to
consult the entire cabinet before acting on various matters,
including Rhee's departure from the country and the appoint-
ment of the new ambassador to the US. Yi reportedly is mov-
ing to consolidate his control of the army, and apparently has
glinnevrt from snmp rahinpt miamhpra in his dispute with Huh.
(Page 1)
Laos: The new Somsanith cabinet, which won assembly
approval on 5 June, is heavily weighted in favor of the Party
of Democracy and Social Progress, the new party sponsored
by the strongly anti-Communist Committee for Defense of
National Interests (CD:NI). General Phoumi, leader of the
CDNI and the miniStevot defense, is probably the real power
in the government. Former Premier Phouits party of old=
U line politicians has only minor representation in the cabinet.
The new government, while reiterating Laos' pose of neutral-
ity
in international affairs, is expecte to nush renrpssve
measures against local Communists. )(Page 2)
Turkey: The atmosphere in Ankara continues tense,twith
an air of anxiety and concern evijcient both within and outside the
present provisional governmenC Foreign Minister Sarper has
told American officials that the nation's internal security forces
U are being screened for unreliable elements, that the army is
fully needed to protect the country, and that the government there-
fore is considering re ilacing the Turkish brigade in Korea by
merely a token force. (Page 4)
U.
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Saudi Arabia: King Saud, in a move certain to increase
frictions between the Saudi Government and the Arabian=
American Oil Company (Aramco), has granted two of his
sons a 40-year concession for the construction and opera-
tion of an oil refinery in Jidda. The private company which
they are forming is to have exclusive rights for the trans-
port, refining, and marketing of oil in the western region of
the country, At present about half of Aramco's sales of pe-
troleum products in Saudi Arabia are in this part of the coun-
try. Aramco officials have already conveyed an initial pro-
test to the King that establishment of an exclusive marketing
area for this new company is in conflietiwithistheterms of
Aramco's own concession agreement.
(Page
Lebanon: The UAlFt is energetically intervening in Lebanon
to influence the national elections scheduled to begin there on
12 June. two former
Lebanese prime ministers, as well as Druze leader Kamil
Jumblatt, are receiving UAR support, and UAR overtures re-
portedly are being made to at least one Christian leader. Un-
less this outside intervention is tempered by compromises ar-
ranged between President Shihab and the UAR, important Chris=
tian elements in Lebanon may become greatly alarmed and
precipitate violence more serious than the sporadic outbreaks
which normally accompany Lebanese balloting.
(Page 7)
7 June 60
DAILY BRIEF ii
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i Possible South Korean Cabinet Split
There are indications that a rift may be developing be-
tween South Korean acting Chief of State Huh Chung and De-
fense Minister Yi Chong-chan because of Huh's tendency to
act without consulting the cabinet. Yi proffered his resigna-
tion on 1 June in protest against Huh's unilaternal action in
allowing former President Rhee to flee the country. Yi re-
portedly also was angered by Huh's failure to consult the cabi-
net prior to appointing retired General Chong Il-kwon ambas-
sador to the United States. Yi informed the American naval
attache that in the former instance the entire cabinet sided
with him and all resented Huh's unilateral action.
L Huh, presumably recognizing that Yi's resignation could
weaken army support for the government, reportedly asked
the defense minister to reconsider. Yi enjoys a reputation
for integrity and honesty and seems to have a considerable
following, particularly among the younger officers. He re-
portedly is trying to consolidate his control over the top mili-
tary commanders, and there have been allegations that he is
maneuvering to oust Huh and take over the government him-
self with army backing. These allegations probably are a
reflection of increasing army factionalism, which if not con-
tained could weaken the military's stabilizing influence on
domestic politics. (SECRET NOFORN)
7 June 6.0
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-SECRET--
New Laotian Cabinet Confirmed by National Assembly
Premier Tiao Somsanith's government, which was invested
by the Laotian National Assembly on 5 June by an overwhelming
margin� is heavily weighted in favor of the Party of Democracy
and Social Progress (PDSP)--the party recently created by the
Committee for Defense of National Interests (CDNI). Former
Premier Phoui's Rally of the Lao People (RLP) has received only
one post, the relatively minor justice portfolio, which will be held
by Phouits brother, Ngon Sananikone. The rest of the 13-man cab-
inet, except for two or three lesser appointees who could be classed
as "independents," is made up of PDSP members. Despite some
weak spots, the new cabinet appears to be one of the abler ones in
Laos' post-independence history; its viability will largely be deter-
mined by the ability of Somsanith and Phoumi to work together.
Brigadier General Phoumi, the most powerful of the CDNI
leaders, heads the Defense Ministry, the same position he held
in the recently resigned caretaker government. Another CDNI
leader, Khampan Panya, is the foreign minister, as he was in the
caretaker government and in the Phoui government prior to the
CDNI-RLP split last December. Somsanith will act as his own in-
terior minister, a post for which he is well suited in view of his
past experience as national police chief and because of his more in-
timate knowledge of village-level problems than most of his col-
leagues. There are also signs he may personally undertake the
reorganization of the government's administrative structure.
Perhaps the most noteworthy of the independents is Touby
Lyfoung, leader of the Meo tribal minority group. His appoint-
ment as secretary of state for information may encourage the mi-
nority groups, which comprise nearly half of Laos' population, to
believe that the new government will take a greater interest in
their problems than did previous governments.
The Somsanith government can be expected to push repres-
sive measures against local Communists and perhaps to make more
vigorous efforts than previous regimes to extend the central govern-
ment's control in the remoter areas of the country. Internationally,
-sEeRET--
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-*or
it will probably not change Laos' pose of neutrality. This will
be especially true in the early months of its tenure, when it will
be anxious to assuage the fears of Laos' friends that it might
provoke the Pathet Lao insurgents and their mentors in Hanoi
and Peiping.
SECRET
7 June 60 CENTRAL IIsITFI I inFNrF RI III FTIKI
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--SEeRET
-Turkish Situation Tense
The new regime in Turkey is beginning to show indeci-
sion and anxiety as it tackles some of the more complex
aspects of assuming civil authority. The National Unity Com-
mittee is finding it necessary to modify some of its earlier
concepts of government, operation. Col. Alatli, as official
spokesman for the National Unity Committee, described it as
being the replacement for the Grand National Assembly, with
authority to change cabinet ministers and pass laws.
The atmosphere in Ankara is described by American mil-
itary representatives as "quite tense," with troops armed with
automatic weapons still posted at major buildings and patrol-
ling the streets. There is apparently, considerable dissatis-
faction both within and outside the government. Some top
military officers are becoming restive under the relatively
junior group composing the National Unity Committee. The
provisional government is also apparently under increasing
pressure from vengeful elements of the populace, including
young military and some Turkish intelligentsia. The pressure
of public opinion may force judicial action against members of
the former government before elections. It is also becoming
more likely that the provisional government will find it difficult
to relinquish the reins of government as early as it had planned.
The military may be unwilling to return power to civilian author-
The foreign minister informed Ambassador Warren on 3 June
that the entire Turkish Army is needed to take the place of the
National Police and Gendarmerie, which are being reorganized
and screened, and to protect the country. He said the provisional
government proposed for this reason that the Turkish brigade in
Korea be returned this summer at the end of its tour and replaced
with a token force of about 30 soldiers. Warren views this pro-
posal as a symptom of the regime's insecurity and uneasiness.
The ambassador believes the general air of uneasiness indi-
cates that the revolution has not developed as expected and that
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.4wiro
a spirit of revenge is growing which could completely vitiate
early promises of fair elections and trials for those accuqed0
there may be considerable bloodshed be-
fore the country settles down. The embassy remains of the
opinion, however, that the Turkish populace is willing to give
the new regime a chance. It views as encouraging the way in
which government leaders are tackling many problems, and
notes that civil servants seem more relaxed and willing to work
under the new ministers.
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Saudi King Gives Sons Oil Refinery Concession
King Saud has granted two of his sons a 40-year conces-
sion to build and operate an oil refinery in Jidda. The private
company which they are forming is to have exclusive rights
to transport, refine, market, import, and export oil in the
western part of Saudi Arabia.
The concession is in the name of teen-age Prince Saad
Ibn Saud, 11th oldest of the King's 25 sons, who holds the title
of commander of the private guard but otherwise has been promi-
nent only for his wild escapades. Prince Saad is actually serv-
ing here as front man for Saudis favorite son, Prince Muhammad
Ibn Saud, chief of the King's advisory council. Prince Muhammad
reportedly has already made arrangements with private firms
in the United States for construction of the refinery and for most
of the capital required. It will probably take a maximum of two
years to build.
Officials of the American-owned Arabian-American Oil Com-
pany. (Aramco), already engaged in several long-standing disputes
with the Saudi Government, feel that the establishment of an ex-
clusive marketing area for this new company is in conflict with
Aramco's own concession agreement. At present about half of
Aramco's sales of petroleum products in Saudi Arabia are in this
western part of the country. Moreover, the Aramco refinery at
Ras Tanura has considerable excess capacity.
The initial protest made verbally to the King by an Aramco
representative on 1 June met with no success. Saud reportedly
showed no disposition to amend the new concession grant and
hinted broadly that perhaps Aramco might overlook any alleged
conflict with its concession terms, since the royal family was in-
volved in the new project. He suggested that Aramco could, how-
ever, write an official letter through normal channels setting
forth its position,
-CONFIDENTIAL-
7 June 60 CENTRAL INTELLIGENCE RtJI I FTIN
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Nor, �
UAR Intervention in Lebanese Elections Increases
Increasing intervention by the UAR in the Lebanese par-
liamentary elections beginning 12 June is indicated by the ac-
tivities of UAR Ambassador Ghalib in Beirut, Syrian Interior
Minister Sarraj, and Marshal Amir, UAR vice president in
Damascus,
After considerable maneuvering between rival Lebanese
political factions, the trAR was able to form "for the higher
Arab interest" a slate of candidates in Beirut, including for-
mer Prime Ministers Albadallah al-Yafi and Saib Salam, and
Nadthim Majdalani, a pro-UAR member of parliament. Druze
leader Kamal Jumblatt, who is supported by President Shihab,
has even asked UAR assistance in transporting voters from
Damascus and the Druze area of Syria, and former Syrian Chief
of Staff Shawkat Shuqayr is aiding Jumblatt's cause. Jumblatt also
has advised Ghalib to "make a show of working in the interest of
Pierre jumayyil," the Christian Phalange leader, but actually "to
work against him." This intensive UAR interest is without doubt
being paralleled in other parts of Lebanon.
the Iraqis
are "engaging in continuous election activity" among Lebanese
Shia Moslems in opposition to efforts of Syrian intelligence, and
are having some success..
Former President Chamoun is running for parliament and is
very likely to be elected, despite opposition from Jumayyil's fol-
lowers. Should Jumayy.il learn of the duplicity of the UARts sup-
port for him, it is possible that he and Chamoun would combine
forces in opposing UAR-favored candidates.
The first important pre-election clash occurred on 2 June
when security forces apparently precipitated an incident in order
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to warn the anti-UAR Socialist National party against taking an
active part in the elections.
Unless this outside intervention is tempered by compro-
mises arranged between Shihab and the UAR, important Chris-
tian elements in Lebanon may become greatly alarmed and
precipitate violence more serious than the sporadic outbreaks
which normally accompany Lebanese balloting. However, Shi-
hab's reported negotiations with UAR agents could in themselves
alarm many Christians.
TOP SECRET
7 June 60
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NEI."
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, Nationai 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 Politicai 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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