CENTRAL INTELLIGENCE BULLETIN - 1960/07/20

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03185142
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 13
• Document Creation Date: March 17, 2020
• Document Release Date: March 26, 2020
• Publication Date: July 20, 1960

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20 July 1960
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� 20 JULY 1960
I. THE COMMUNIST BLOC
USSR to resume substantial arms ship.
ments to UAR; also apparently will pro-
vide Irao with MIG-19 aircraft.
USSA may be preparing for another space
vehicle launching.
II. ASIA-AFRICA
Republic of Congo--Belgian Government
considering recognition of Katanga Prov-
ince's secession; situation in northeast
Congo tense, and rising unemployment
in Leopoldville Province poses threat of
riots.
Iraqi oil exports through Persian Gulf
likely to be defied down unless Qasim re-
yokes decree raising loading charges.
III. THE WEST
�Cuba--Castro indicates concern over
growing church opposition to Cuba's
Communist ties.
�West lerman defense minister "dubious'.
of wisdom of Adenauer's position of
avoiding "provocative actions" in Berlin.
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CENTRAL INTELLIGENCE BULLETIN
20 July 1960
DAILY BRIEF
L THE COMMUNIST BLOC
USSR - Middle East: A Soviet merchant ship�the Lipetsk�
has been scheduled-TO-Toad a cargo of arms in the near future
for the UAR at the Black Sea port of Nikolaev, the first signifi-
cant Soviet arms shipment consigned to the UAR in more than a
year. Additional military equipment, presumably also destined
for the UAR, now is arriving at Nikolaev, suggesting that major
arms deliveries are about to be resumed. Earlier evidence indi-
cates that the UAR probably will receive MIG-19 jet fighters and
T-54 medium tanks, as well as other weapons and equipment.
Moscow also has annarentiv decided to nrovide Iran with
MIG- 19s. a group
of officers and enlisted men are preparing to go to the Soviet Un-
ion to take training on "the care and maintenance of the MIG-19
aircraft." ) (Page 1)
[USSR: Recent activity on the Tyura Tam missile test range
indicates that another space vehicle launching may occur soon.
Following the 7 July firing to the mid-Pacific there has not been
the usual departure of large numbers of aircraft from the range-
head area. Instead, an unusually high number of Moscow-based
transport aircraft have been noted flying into Tyura Tam. Two
rangewide practices were conducted on 13 and 18 July. Although
identification of the type of vehicle is not yet possible and the ac-
tivity may culminate in a normal ICBM firing fn Kamchatka
a forthcoming launching will be connected with Rnacp
TO
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NEW
TOF'SEC-XtZ
�
IL ASIA-AFRICA
� Republic of the Congo: Premier Lumumba continues to
stimulate anti-Belgian sentiment, apparently in order to bol-
ster his position. While the situation in Leopoldville Province
appears to be easing, rising unemployment�now totaling
75,000---poses the threat of riots. Moroccan UN troops have
taken over the port of Matadi, and Belgium has agreed to pull
its troops out of the Leopoldville area and return them to the
two Belgian bases in the Congo between 20 and 23 July. At the
same time, in the northeastern Congo the situation continues
tense. There are likely to be serious international repercus-
sions if Brussels carries out its apparent intention to recognize
Katanga's secession. Belgium has previously declared its oppo-
sition to formal recognition, but industrial groups and right-wing
ministers reportedly have� brought increasing pressure on the
government. (Page 2)
Iraq: Exports of Iraqi oil through the Persian Gulf may be
virtually halted on 23 July unless Prime Minister Qasim revokes
a Council of Ministers' decree drastically raising oil loading
charges beginning that day. The Iraq Petroleum Company (IPC)
considers these charges illegal, and most companies within the
IPC group will refuse to pay. The company, anticipating a shut-
down, already has reduced production in Iraq's southern fields by
40 percent. These fields account for more than 30 percent of the
country's total oil exports. Last year the southern fields produced
about $10 million in revenues for Iraq. (Page 3)
III. THE WEST
Cuba: Fidel Castro's 18 July speech lashing out against "coun-
terrevolutionary activities" by "Falangist" priests indicates the
re me's concern over growing church opposition to Cuba's increas-
g Communist ties. The church hierarchy has thus far vacillated
20 July 60
DAILY BRIEF ii
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in its public attitude toward the Castro government, but its
stand will probably be hardened by the spontaneous anti-
Communist demonstrations of churchgoers on 17 and 18 July.
LUS Ambassador Bonsai feels that Soviet Premier Khru-
shchev's 9 July statement of support for Cuba has been a
serious blow to the Castro regime in that, by clarifying any
doubt regarding the Communist orientation of the government,
it has put Castro on the defensivel]
(Page 4)
West Germany:: Defense Minister Strauss has indicated
to the American Embassy in Bonn that he is "dubious" regard-
ing the wisdom of Chancellor Adenauer's position that the fed-
eral government must avoid taking any action in Berlin "which
would create difficulties for our allies." Strauss feels that if
the Bundestag session is not held in Berlin this fall, it probably
would not ever, be held there again. Another party official ex-
plained Adenauer's position on the ground that any action, whether
it had precedent or was something new, which would serve as a
pretext for a separate treaty between the USSR and East Germany
must be avoided. He said it was assumed that the US would not
wish to be put in the kind of difficult situation which would result
from a separate treaty touched off by holding a Bundestag meet-
ing in Berlin. (Page 5)
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NoeV'
� Bloc Arms Aid to the UAR and Iraq
The Soviet merchant ship Lipetsk has been scheduled to
carry an arms cargo to Alexandria from the Black Sea port of
Nikolaev later this month, apparently initiating the first sig-
nificant Soviet deliveries of military equipment to the UAR in
well over a year. Additional Soviet materiel, presumably also
consigned to the UAR, now is arriving at Nikolaev, suggesting
that Cairo is again to receive large quantities of military sup-
plies from the USSR. The Lipetsk shipment appears to climax
almost two years of intermittent and frequently troubled nego-
tiations.
the USSR had planned to supply the UAR with
jet lighters, T-54 medium tanks, and a wide assort-
ment of other arms and equipment.
Czech-UAR negotiations concerning additional military aid=
Including arms repair shops and spare parts for equipment pre-
viously supplied the UAR--also appear to be nearing a success-
ful conclusion in Prague. The UAR negotiator in late June in-
formed Cairo that he hoped to resolve all the problems concerning
the agreement in early July, and that he planned to return to the
UAR by the middle of the month.
There are indications that the UAR has begun negotiations
with Poland, too, for the supply of military equipment--possibly
arms production facilities.
Moscow apparently now has decided to provide Iraa also with
MIG-19s. a group
of officers dna ennstea men is being prepared to take training in
the Soviet Union on "the care and maintenance of the MIG-19 air-
craft." Iraqi military personnel have recently been assigned to go
to the Soviet Black Sea port of Poti for motor torpedo boat train-
ing.
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_ LAJINirir
Now
The Situation in the Congo
The situation in Leopoldville Province has eased for the
moment as UN troops have taken over responsibility for local
security from Belgian forces. The presence of around 75,000
unemployed in the area constitutes an element of instability,
however, particularly in the event of a serious food shortage.
Since many Belgians have left the area for good, prospects for
the near future appear to include a major economic dislocation.
In the interior, major disorders continue. The American
Consulate in Uganda has characterized the situation in the
Congo's Kivu Province as tense, and that in Orientale Prov-
ince as having "deteriorated seriously." Force Publique units
in Orientale Province are said to be no longer responsive even
to their chosen African "officers."
Premier Lumumba continues to associate himself with the
anti-Belgian and antiwhite sentiment fostered by the Force Pub-
lique rebellion, but he appears unable to direct or control it.
Although Lumumba has been balked by the Congo Senate in his
threat to request Soviet intervention, Brussels' agreement to
withdraw Belgian troops to their Congo bases by 23 July may
bolster his prestige internally. It appears likely that Lumumba
expects the UN occupation to provide him with a period in which
to consolidate his tenuous hold on the Congo's governmental
machinery. He may view Soviet technical assistance as an
eventual substitute for Belgian technical and financial support.
here are indications that Brussels may, shortly recognize
the independence of Katanga, which has declared itself independ-
ent of the Congo. Such a move would be condemned by the Com-
munist bloc and by most of the independent Asian and African
states as a move to establish a Belgian puppet state; it might,
however, lead to similar recognition by Portncral and Franep-1
CO
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utfoir 'Linn urPw
New
)Partial Shutdown of Iraq's Oil Production Impending
Exports of Iraqi oil through the Persian Gulf may be vir-
tually halted on 23 July when the Basra Port Administration
attempts to collect port dues 13 times the previous rate. Iraqi
officials have been ordered to, forbid tankers to depart unless
the increased dues are paid.
' Although Iraq Petroleum Company (IPC) officials are at-
tempting to see Prime Minister Qasim in an effort to persuade
him to revoke the Council of Ministers' decree, they believe there
is almost no chance of a settlement before the 23 July deadline.]
r Since 1951, IPC has been paying port dues equivalent to 6.5
cents per ton of petroleum exported from Iraq's southern oil
fields. In December 1959, however, the Basra Port Adminis-
tration, an autonomous body with authority to set its own charges,
increased cargo dues to about 78 cents per ton. The port ad-
ministration's actions were subsequently approved by the Cotm-
cil of Ministers. IPC has refused to pay, pointing out that the
increase violated existing agreements. Implementation was post-
poned until 23 July, but the charges are retroactive to last Sep-
tember. At the normal rate of production, these port charges
would add more than $9,000,000 annually to the cost of IPC crude
exported from the Persian Gulf i3
(The company, anticipating a shutdown, already has reduced
production in Iraq's southern fields by 40 percent. These fields
account for more than 30 percent of the country's total oil exports.
Last year the southern fields Produced ahont (trill 00,000 of oil
revenues for Iraq.
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LUIV
Friction Between Church and Castro Regime Increasing
In his television speech of 18 July, Premier Fidel Castro
denounced the "counterrevolutionary activities" of "Falangist"
priests whom he accused of being responsible for the spon-
� taneous anti-Communist demonstrations by Havana churchgo-
ers on 17 and 18 July. Castro said that "the reactionary clergy
has not been bothered" by his regime and declared that "the
people must not permit themselves to be dragged into the game"
by counterrevolutionary demonstrators. The charges of the
Cuban leader, who interrupted his convalescence to deliver the
blast, indicate the regime's concern with increasing evidences
of church opposition to the government's growing economic and
political ties with the Communist world. (l-US Ambassador Bonsai
feels that Soviet Premier Khrushchey's 9 July statement of sup-
port for Cuba has been a serious blow to the Castro regime in
that, by clarifying any doubt regarding the Communist orienta-
tion of the government, it has put Castro on the defensive ,0
Despite the publication last May of a strongly anti-Commu-
nist pastoral letter, by the archbishop of Santiago de Cuba, most
church authorities have hesitated to take a firm public stand
against Castro or his policies. Church officials previously have
admitted that they have only limited influence with the Cuban peo-
ple and that, unless careful preparations were made, most Cubans
would support Castro in the event of a showdown between him and
the church. Divergent attitudes toward Castro by the large number
of Spanish-born priests in Cuba and the native Cuban clergy may
also hinder church unity on the question.
The Catholic hierarchy's determination to oppose the Castro
regime openly may be hardened by the government's use of force
in suppressing the anti-Communist demonstrations on 17 and 18
July. According to Ambassador Bonsai, the incidents have cre-
ated a tenser atmosphere within influential Catholic lay circles.
and serious repercussions
may dpwalnri
---CONFH9EPsr-T�IAL-
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Adenauer Opposes Berlin Bundestag Session
West German Defense Minister Strauss has indicated to
American officials in Bonn that he is "dubious" regarding the
wisdom of Chancellor Adenauer's position that the federal gov-
ernment must avoid taking any action in Berlin "which would
create difficulties for our allies." Strauss feels that if the
Bundestag session is not held in Berlin this fall, it probably
� will never be held there again. He added that this would con-
cede Khrushchev a considerable victory by allowing him to dic-
� tate what the West should permit to occur in West Berlin.
The press officer of the Christian Democratic Union (CDU)
Bundestag faction explained Adenauer's position on the ground
that any action--whether it had precedent or was something new--
which would serve as a pretext for a separate treaty between the
USSR and East Germany must be avoided. The CDU spokesman
said it was assumed that the United States would not wish to be
put in the kind of difficult situation which would result from a sep-
arate treaty touched off by holding a Bundestag meeting in Berlin.
The position of the Bonn government was indicated in an article
in the 15 July issue of an unofficial CDU publication written by All-
German Affairs Minister Ernst Lemmer. Lemmer, the only West
Berliner in the Bonn cabinet, maintained that despite the clear
right of the Bundestag to meet in Berlin, the government "should
avoid placing the powers guaranteeing Berlin's security in a po-
sition which public opinion in those countries might not support to
the last consequences."
Bonn's position is certain to aggravate the political controversy
between the chancellor and West Berlin Mayor Willy Brandt, who
is the chancellor candidate of the opposition Social Democratic
party. Brandt sent a letter to Adenauer on 13 July maintaining
that Allied and Federal Republic rights in Berlin should not be aban-
doned or limited in the face of intensified Soviet threats. He as-
serted that cancellation of the Bundestag session would seriously
undermine Berlin morale.
JAL
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11-0.1..,1
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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