CENTRAL INTELLIGENCE BULLETIN - 1960/09/24

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02997536
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 14
• Document Creation Date: March 17, 2020
• Document Release Date: March 26, 2020
• Publication Date: September 24, 1960

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24 September 1960
Copy No. C
CENTRAL
INTELLIGENCE
BULLETIN
DOCUMENT NO ai
Na OtAlUGE IN CLASS.
0 DECLASSIFIED
CLASS. C:�:ANCE1.; TM TS S
NEXT FI:VION LAIL: .0749(C)
MANIIil
1 0 JUN 1980
DATES � REVIEWER:
T 0 E T
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24 SEPTEMBER 1960
I. THE COMMUNIST BLOC
II ASIA-AFRICA
South Korea to dismiss senior officials
appointed under Rhee.
Laotian King again trying to convoke meet-
ing of military commanders to reunite
army. CD
Afghanistan strengthening border forces;
may exploit unrest among Pushtoons in
Pakistan.
Yemen--Imam's health failing.
Congo--Mobutu moves to neutralize
Lumumba's advisers.
III. THE WEST
Cuba--Ambassador believes US citizens
should be encouraged to leave; Cuba re-
ported preparing to break relations with
US.
Argentine economy minister to ask $475,-
000,000 from US for economic develop-
ment.
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CENTRAL INTELLIGENCE BULLETIN
24 September 1960
DAILY BRIEF
I. THE COMMUNIST BLOC
IL ASIA-AFRICA
South Korea: Prime Minister Chang Myon is stepping up
dismissals of senior government, provincial, and police offi-
cials appointed during the Rhee administration. The dismissals,
largely on grounds of corruption, are intended to win public
confidence in the new government but will affect many compe-
tent officials�especially in important economic posts--whom
South Korea can ill afford to sacrifice. It seems probable that
there will be a similar "house cleaning" in the military, as
well as a selective attack on businessmen and industrialists
for tax evasion and political kickbacks.
(Page 1)
Laos: UCing Savang is making a new and stronger attempt
to convoke a meeting of military commanders with the stated
aim of reuniting the army. Differences over the site for such -
a meeting remain unresolved, with the King insisting on Luang(/' -/
Prabang and Phoumi seeking another location. In their 22 Sep- 1� ,)--)3
tember meeting in Bangkok, Phoumi and Thai Premier Sarit fare reliably said to have agreed that Phoumi must continue his
military pressure against Vientiane whether or not a meeting
is arranged. Sarit has told American officials in Bangkok that
he advised Phoumi to reject a Chinese Nationalist offer of
guerrilla forces in the Laos-Burma border area, but stated
that if the Laotian situation continued to deteri rate, Phoumi
(I
might have to reconsider_j
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�ts,
.Affe
to exploit unrest
border. R...e.iStarli ;7
' :hting among the tribe.:
enistan apparently is pre.par-
?4,_ e7toon tribes in Pakistan near
are ao.ereuting to put down
_ eercer area north of the Khyber
Iiass. Kabul bas canc T. _11 army leaves, called up some
reservists, and is sending addianal armee- end infantry units
to the Pakistani border arC:3_. Te Afghans are also recruiting
irregulars, and some have reporter:2, already crossed
the frontier in an effort u enconeage the tribal opposition to
the Pakistani Governirier.t. (Page 2)
*ye
the Imam's health ein :ailing.. On 21 St'?,ptember orders
were issued to summon Imaen's physician from Aden to the
yal prea.mce" in ii:.::: "immediately." An extremely
unstable situation in Yemen would probably follow the Imam's
death, since Crown Prince Badr's right to succession is likely
to be contested by 'Yemeni tribesmen loyal to the Imam's broth-
er, Prince Hasan, as well as by elements favoring the abolition
of the monarchy.
*Congo: Colonel Le.;t has begun to neutralize Luniumba's
closest advisers; on 23 Ee,-,_ezriber he arrested leftist Deputy
Premier Gizensra and .1.Le. e7er of Youth and Sports Mpolo. He
has not yet moved direct: against Lurnurnba, who is at home
under protective UN guard. Ghana, Guinea, and the UAR con-
tinue to support Lumumba, and Ghana's President Nkrumah in
New York has demanded that the UN exercise its functions in
the Congo through a command structure set up by the independent
African states.
The UN secretary general has reprimanded Belgium for per-
mitting Belgian officers to command secessionist troops in Kasai
Province, and has demanded immediate termination of this mili-
tary assistance. (Page 3)
III. THE WEST
Cuba: In view of the worsening situation in Cuba, Ambas-
sador Bonsai believes US citizens should be quietly encouraged
24 Sept 60 eT,LY BRIEF.
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V
ve the COlvil
rri1:7-fr prot�T!,.;
York !mare
incited to violenc--.;
s 7 also 4.
:t participants in the 19-20
' .7-idignities" suffered by Castro
dc:...t7::..-ntined and could easily have
'--,xernment so desired. The
7 report
to tr.e:-..oz ciplomatic
Cuba is preparing
the United States and may
o E7,2()rati After -.'etu::n from the UN.
Arfzontina: Econorn7. ni Alvaro Alse7aray, who ar-
rives in Washington on :er, plans to seek some $475,-
,000 from various US a move which reflects the
zency which the govci.: it 1.1,7 attaches to positive steps to-
rd develoi;.. Lnder the US-backed stabilization
ram initiated in v 159, the Argentine peso has been
ed and policies .Nvoring free enterprise emphasized, but
the program contributed to an 11.2-percent drop in industrial
production and a 25-perc;TIlt decline in real wages in 1959. Fron-
dial considers this tre :re:'. both to political stability and -
to Argentina's firo7re ,-e-,L1-11.ishing a. sound economic
structure. (Page 6)
24 Sept 60
DAILY BTJEF iii
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Large-Scale�irismissal of South Korean Officiwt
South Korean Prime Minister Chang Myon, already faced
with the renewed threat of defections from his loosely knit
Democratic party, may disrupt government operations if he
carries out a plan, announced on 28 September, for the large-
scale dismissal of senior government, provincial, and police
officials appointed during the Rhee administration. The purge,
designed to win popular support for the new government by re-
moving allegedly corrupt remnants of the old regime, probably
will affect many competent officials whom South Korea can
ill afford to sacrifice, especially in important economic posts.
Chang's action may be motivated in part by a desire to
establish within the government an organization personally
loyal to himself. Kim To-yon, Chang's erstwhile rival for
the prime ministership and the nominal leader of the party's
"old" faction, on 22 September announced his intention of with-
drawing from the party. At the moment, the Democrats' 180
seats in the 233-member assembly are about evenly divided
between Chang's supporters and the "old" faction.
The government will also probably undertake a "house
cleaning" of high-ranking military officers accused of corrup-
tion or of delivering military votes to Rhee's Liberal party in
the rigged elections last March. tenior officers currently under
investigation include the chairman of the Joint Chiefs of Staff,
the chief of naval operations, and the commanding generals of
the First and Second Armies Agitation by junior Officers anx-
ious for promotion appears to be a factor in both recent and
projected changes in the top echelons. American military ad-
visers are concerned that such changes will adversely affect
the combat capability and discipline of the South Korean armed
services.
The new government is also attempting to expose abuses
in business operations under the old regime. Businessmen
and industrialists found guilty of tax evasion and political kick-
backs have been fined severely. Enforcement of these penal-
ties could lead to bankruptcy for some leading enterprises.
CONF
24 Sept 60
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Tribal Unrest Along Afghan-Pakistani Border
The Afghan Government is moving to strengthen its armed
forces along the border following the outbreak of fighting among
some Pushtoon tribes in Pakistan.
Pakistani authorities have had chronically poor relations
with the Nawab of Dir, a local ruler who controls a semi-auton-
omous tribal stAte adjacent to the Afghan border north of the
Khyber Pass. he Nawab believes, apparently with some jus-
tification, that the Pakistani Government has supported tribal
leaders seeking to oust him. He is again under attack by rival
triba forces, and there are reports he has asked for help from
Kabul.
Kabul has canceled all army leaves, has called up some
reservists, and is sending additional armor and infantry units
to the border, both north and south of the Khyber Pass. The
Afghan Government is also recruiting tribalirregulars,aml, re-
portedly somethave already .crossed the border to spark fur-
ther unrest and encourage tribal opposition to the Pakistani
Government.
At the same time, Kabul wants to prevent the spread of the
unrest to Pushtoons on the Afghan side of the boundary. Afghani-
stan has had considerable difficulty with its own tribes, espe-
cially in the area bordering Dir. Since a shooting incident in
1958 involving the Mohmands, a powerful Pushtoon tribe living
on both sides of the frontier, Kabul has increased its garrison
in the area and has pushed its road-building program to facili-
tate extension of its control. Meanwhile, Pakistani political
agents have stepped up their efforts to increase their influence
among the Mohmands.
Each government, while continuing to stir up trouble for
the other among the tribes, will probably be careful to prevent
the situation from getting out of control and leading to an open
break.
24 Sept 60
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Situation in the Congo
Colonel Mobutu has started an effort to neutralize Lumum-
ba's political support by removing two of the premier's closest
advisers. On 23 September he arrested Lumumba's leftist
deputy premier, Antoine Gizenga, and Maurice Mpolo, minister
of youth and sports. Mobutu said both men were "in prison
somewhere." Another source of leftist influence, Madame
Blouin, has taken refuge in the Guinean Embassy. Mobutu re-
portedly had no immediate plans for action against Lumumba,
who renAined at his official residence under UN protective
guard. ,ccording to the US army attache, Mobutu might face
serious trouble if the ill-disciplined and unarmed troops at
Camp Leopold II seize arms and ammunition.-,
The African states of Ghana, Guinea, and the UAR con-
tinue to support Lumumba \,9,..nd have been putting continuous
and mounting pressures on Kasavubu and Ileo to reach a com-
promise with Lumumba. The American ambassador believes
the move is inspired by Nkrumah, who clings to his aspirations
for a Ghana-Guinea-Congo union as a steppingstone to the
"Nkrumization of Africa."10n 23 September in New York the
Ghanaian President demanded that the United Nations exercise
its functions in the Congo through a unified African command
with responsibility to the Security Council.
In New Delhi, President Toure of Guinea on 23 September
stated that he supported Lumumba "without reservation" as the
head of the Congolese Government. ttresident Nasir recently
stated that the UAR supported Lumumba because he was the
legitimate head of government and seemed most devoted to
national unity; however, Nasir recognized Lumumba's complete
lack of experience and limited abilities)
Hammarskjold recently reprimanded Belgium for permit-
ting Belgian officers--pretending to be French or British volun-
teers--to command the forces in Kasai Province which are sup-
porting the effort of Albert Kalonji to establish an "autonomous
state of South Kasai." The UN secretary general demanded that
24 Sept 60
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Brussels immediately take action to terminate this military
assistance.
In neighboring Katanga Province 500 to 600 Belgian civil-
ian technicians run Katanga's public administration, technical
services, and court system. In addition about 150 Belgian of-
ficers and noncoms serve inthe Katangan armed forces, but
only the military adviser attached to President Tshombd wears
a Belgian uniform. The government expects to have 2,000
trained and equipped men by the end of the year. The previous
target of 3,000 is deemed unattainable because of the slow
progress of reorganization.
There reportedly is a strong desire among Katangan soldiers
for the rapid Africanization of the officer and noncom corps
which may lead to a serious crisis in the army. The Ameri-
can Consulate in Elisabethville expects similar pressure to
develop in all of the government services in Katanga.
SECR
24 Sept 60
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7lity
Cuban Situation Ilfe
Amtasse,eor
essential that U citiee
employees, be quieti
recent events- Icadine
teniber mast rally pec-
Fidel Castro in New
determined and could ee.
had the government so ,e
believee it, has now become
inc1, ing dependents of government
- lee -1 to leave the country. Among
C was the 19-20
"indignities" suffered by
ce:.,:eionstrators were unusually
eee been incited to violence
Although there have thus far
been very few- occasiaee eer..fte personal security of Ameri-
cans in Cuba has been ',eeeeetreezed, the hostile propaganda be-
ing steadily'dissemiratee ee.;.7 tea reEr.,ime is bound to have an �
effect on the public. Ante- -lelence now is an increasing
peseibility and would be e. certainty if Castro were phys-
ically attacked during hie few York visit.
baSsy has an unevaluated report
that Cuba is pre-
paring to break diplomatic eele.tions with the United States,
and may do so shortly alter Coe3troes return from the United
eeions.
Other foreign l'ulea are becoming concerned
for their safety.
the Haitian consnrin o ee Cuba asked his government
or a 48-hour leave to eeekeeate his family, because "the sit-
uation. is most difficult and ful. 01 uncertainty."
Soviet techni-
cians are engaged in some type GI military construction at
Managua, an army base southeast of Havana. Six large crates,
allegedly containing "rockets or some type of heavy artillery,"
have reportedly been transported to the site. The activity
probably involves antiaircraft weapons.
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-Argentina to Seek New US Loans\
Argentine Economy Minister Alvaro Alsogaray, who is
scheduled to arrive in Washington on 26 September to attend
IMF and IBRD meetings, will seek some $475,000,000 in new
loans from US agencies, a move which reflects the urgency
his government now gives to positive steps toward economic
development. In sketching his plans for the American Embassy
in Buenos Aires, he mentioned projects for highways, housing
and rural resettlement, and airport improvements totaling
$375,000,000 as well as a loan of $100,000,000 to be used in
one or two years to ease Argentina's short-term debt burden.
He emphasized the need to provide additional employment and
give some encouragement to the Argentine people, who have
borne the brunt of the US-backed stabilization program.
Since the program began in January 1959, the peso has
been stabilized and government policies have emphasized free
enterprise, but industrial production declined 11.2 percent dur-
ing 1959, and real wages have dropped about 25 percent. The
psychological impact of the 25-percent rise in petroleum out-
put has been lessened by nationalistic criticism of the par-
ticipation by foreign companies in the oil industry.
The government, plagued by subversive agitation by the
Communists and Peronistas as well as strong complaints from
provincial governors, has promised that its program now will
emphasize economic expansion. President Frondizi believes
expansion is essential to combat latent�if not immediate
political threats to his administration, which faces crucial
congressional elections in 1962, and to safeguard progress
thus far toward re-establishing a sound economic structure.
There is also pressure among official circles to relate
political cooperation with the United States to American eco-
nomic cooperation, a tendency which was evident among mem-
bers of the Argentine delegation at the recent Bogota economic
conference but which is not shared by Alsogaray.
CO
AL
24 Sept 60
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4461.i WJLJJJAL
�6�11
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
AL
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