CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A003600420001-5
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 14
• Document Creation Date: December 15, 2016
• Document Release Date: January 6, 2003
• Sequence Number: 1
• Publication Date: April 18, 1958
• Content Type: REPORT

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18 April 1958
Copy No. 140
State Dept. review completed
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CENTRAL INTELLIGENCE BULLETIN
18 April 1958
DAILY BRIEF
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Watch Committee conclusion -- Middle East: A delib-
erate initiation of hostilities in the Middle East is considered
unlikely in the near future. However, serious incidents are
likely to recur.
Rhodesia and N asaland: Rhodesia's progress toward
racia partnership and political stability received a sharp
setback on 17 April when the moderate prime minister of
Southern Rhodesia was defeated by a prosegregationist in a
special election. This defeat will probably lead to an im-
mediate general election in Southern Rhodesia in which the
segregationists are expected to make heavy gains which
would result in a heightening of racial tension and an in-
crease in African nationalist activity throughout the federa-
tion. (Map)
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III. THE WEST
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* France - North Africa: :President Coty is not expected
to name a candidate for the premiership until after the lo-
cal elections of 20 April. There are some signs of renewed
pressure for a call to General De Gau.Ue, but it has not reached
significant proportions. In Tunisia, Bourguiba has publicly
raised the possibility of again pressing charges of French
aggression in the UN. British Foreign Office officials are
concerned. over the possibility of new incidents on the Tuni-
sian-Algerian frontier, feeling. that right wing. elements may
have more freedom of action while the nt is in a
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~ O ~ 00~ O ~ ~ ~ ~ ~ O ~ ~ ~ O~ 00 O ~ 000 ~ ~ ~ O ~ \ \ ~ ~ ~ ~ ~ ~ ~ ~ \ \ ~ ~ ~ ~ O ~ ~ \ \ \ \ \ \ ~ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ O \ \ \ \ \ \ \ \ O \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \
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Watch Committee conclusion -- Indonesia: There is no
evidence of Sino-Soviet intention to become militarily in-
volved in Indonesia. Developments continue to favor local
Communist and Sino-Soviet bloc exploitation of the situation.
A military defeat of the dissidents on Sumatra would not re-
solve the basic issues which led to the revolt.
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a breakup cannot be ruled out,.
009003600420001-5
Iceland: The 20-month-old coalition government of
Progressives, Social Democrats, and the Communist-dom-
inated Labor Alliance is approaching a crisis over meas-
ures to stabilize the country's inflation-ridden economy.
The hard-core Communists within the Labor Alliance ap-
pear unwilling to accept a continued wage freeze and favor
the party's withdrawal from the government--a move which
would cause the government to fall. Although the coalition
has weathered serious crises in the past, the possibility, of
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NEW
Livingstone
Lusaka
Kafue'
NYASALAN4b
.Kasungu
Salima
Wankie
a?o SOU-HERD
'Zomba
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Racial Moderation Suffers Setback in Rhodesian Election
The defeat of Southern Rhodesian Prime Minister Sir
Edgar Whitehead in a by-election for the Territorial Assem-
bly on 16 April is a serious blow to the principle of racial
partnership and will probably lessen political stability of the
Federation of Rhodesia and Nyasaland. Under the constitu-
tion,, the prime minister must be a member of the terri-
torial legislature. Since he must be elected within four
months of his appointment in order to remain in office,, he
will probably call for immediate general elections in which
the opposition Dominion party--which openly supports racial
segregation--is expected to make heavy gains.
Southern Rhodesia, keystone territory of the three-
member Federation of Rhodesia and Nyasaland, dominates
the region's political life. Both Southern Rhodesia and the
federation are governed by the moderate United Federal
party, which is seriously divided on the racial question and
subject to pressure from the growing 1 scgregatioiiist, oppo-
sitiono This opposition has won most of the recent by-
elections.
In February, Sir Edgar's relatively liberal predecessor
was ousted by party members who feared his pro-African
sympathies. This ouster destroyed much of the Africans'
faith in the professed racial partnership of the ruling party
and raised. concern in London, which is confronted with
growing white settler demands for full independence. The
Africans' distrust will now be sharpened by the electorate's
repudiation of Sir Edgar, and African dissidents will prob-
ably increase their nationalist agitation.
Meanwhile, in the Union of South Africa, the white elec-
torate greatly strengthened the hold of the National party--
which be ' ves in rigid segregation--in the general elections
there 16 April. 25X1 A
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III. THE V VEST
Repercussions of Gaillard's Fall
The French National Assembly has resumed its recess
to campaign in the local elections scheduled for 20 and 27
April. President Coty is continuing his consultations but is
not expected to name his first candidate for premier until
Monday to avoid the possibility of having his choice influ-
ence Sunday's first-round vote. He may then choose a cen-
ter candidate such as ex-Premier Pleven in hopes of has-
tening the necessary compromises between the non-Commu-
nist left and. right.
The return of General De Gaulle is again being urged by
his most ardent supporters but there seems to be no major
increase in this pressure. Should ex-Gaullist Soustelle be
named as a candidate, however, he might use his investiture
attempt to rally support for the genera. New Assembly elec-
tions have been urged by the conservative National Association
of Small Businessmen, but such a move would encounter heavy
opposition among the deputies many of whom insist on a prior
change in the electoral law.
To allay the impatience of extremists in Tunisia, Pres-
ident Bourguiba will apparently make some early move to
raise again charges of French aggression at the UN. Any se-
rious new incidents would almost certainly force him to take
immediate action, possibly including steps against French
troops. The possibility of such incidents has alarmed British
Foreign Office officials. They fear that the present caretaker
status of the Gaillard government will give Defense Minister
Chaban-Delmas a freer..han_d and make him increasingly willing to
accede to military and rightist pressure. Chaban-Delmas in-
dicated to American officials just before Gaillard's fall that
France was about to implement an "eye for an eye" military
policy against rebel raids from Tunisia.
In Algeria, there is evidence that some French army officers
have again been concerting plans with European civilian extrem-
ists aimed at overthrowing the local regime. It is improbable,
however, that essential military support for such an operation
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Crisis in Icelandic Government
Iceland's 20-month-old coalition government of
Progressives, Social Democrats, and the Communist-
front Labor Alliance may fall as a result of disagree-
ment over how to stabilize the inflation-ridden economy.
Since mid-March the cabinet has been trying to formu-
late a deflationary program short of devaluation which
would produce during the remaining eight months of 1958
the approximately $12,000,000 needed to cover the deficit
in the Export Fund.
The government will not resort to a general devalua-
tion of the overvalued currency (16.3 kronur,:'to the dol-
lar), since the Communists resolutely oppose such a move.
Consequently, Prime Minister Jonasson is demanding that
the Communist-controlled Icelandic Federation of Labor
(IFL) accept a continuation of the present wage freeze.
The.Moscow-Communist wing of the Labor Alliance, how-
ever, feels that it must champion labor's demands for
higher wages or risk losing control of the IFL as well as
suffering further losses in the local unions, and therefore
favors withdrawing from the government.
These circumstances may result in a dissolution of
the coalition. In the past, however, the Communists have
made far-reaching compromises to remain in the govern-
ment and thus retain their growing influence on the nation's
economy and political, life.
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18 Apr 58 CENTRAL INTELLIGENCE BULLETIN Page 4
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CENTRAL INTELLIGENCE BULLETIN
18 April 1958
'atch Committee conclusion --Indonesia: There is no
evidence of Sino-Soviet intention to become militarily in-
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volved in Indonesia. Developments continue to favor local
Communist and Sino-Soviet bloc exploitation of the situation.
A military defeat of the dissidents on Sumatra would not re-
solve the basic issues which led to the revolt.
I I
Watch Committee conclusion -- Middle East; A delib-
erate initiation of hostilities in the Middle East is considered
unlikely in the near future. However, serious incidents are
likely to recur.
would cause the government to fall
s R '8
s ~P7ds~t? 1 lf5~i~
a breakup cannot be ruled out.
Rhodesia and Nyasaland: Rhodesia's progress toward
racial p artnership and political stability received a sharp
setback on 17 April when the moderate prime minister of
Southern Rhodesia was defeated by a prosegregationist in a
special election. This defeat will probably lead to an im-
mediate general election in Southern Rhodesia in which the
segregationists are expected to make heavy gains which
would result in a heightening of racial tension and an in-
crease in African nationalist activity throuLyhnut the fPr3Prn-
Iceland: The 20-month-old coalition government of
Progressives, Social Democrats, and the Communist-dom-
inated Labor Alliance is approaching a crisis over meas-
ures to stabilize the country's inflation-ridden economy.
The hard-core Communists within the Labor Alliance ap-
pear unwilling to accept a continued wage freeze and favor
the party's withdrawal from the government--a move which
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