CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A003600480001-9
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: December 15, 2016
• Document Release Date: January 8, 2003
• Sequence Number: 1
• Publication Date: April 25, 1958
• Content Type: REPORT

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25 April 1958
copy NO, 140
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CENTRAL INTELLIGENCE BULLETIN
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25 April 1958
DAILY BRIEF
Io THE COMMUNIST BLOC
'U- Yugoslavia: Further developments at the Yugo-
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II. ASIA-AFRICA
b
slav party congress make remote the possibility of any
Yugoslav-Soviet party reconciliation. Yugoslavia's top
ideologist, KardelL, diverged from the relatively mild pre-
pared version of his speech to the congress to reiterate
Yugoslav rejection of Soviet threats to read his country out
of the Communist world. He declared, along with several
other pointed remarks, that "we do not need a Marxist. and
Leninist certificate issued by others" to practice Commu-
nism,
Dhahran Airfield: Saudi Defense Minister Prince Fahad
has asked that the American flag no longer be flown over the
United States' military installation at Dhahran. This request
is in line with the recent Saudi public statement outlining a
policy of "positive neutrality" opposing pacts with non-Arab
states, and specifically denying that Dhahran is an American
"base." (Page 2)
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Suez Canal compensation: Egypt and the old Suez Canal
Company have reached agreement on compensation; it may
take two months to work out the details. The terms are close
to Nasir's recent offer of about $65,000,000 for the company's
nationalized property, payable in installments, plus some
$14,000,000 which the company would retain from canal tolls
it collected after nationalization. Nasir has wanted a quick
settlement, and the British have pressed the company to re-
solve this issue before Nasir's departure for Moscow sched-
uled for 29 April.
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 would not resolve the
mars i
hi
the r
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volt
ssues w
c
e
o
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Ceylon: Strikes by railway, postal, and port workers
are placing considerable new pressure on Prime Minister
Bandaranaike, whose government is already plagued by
agitation over recognition of Tamil as an official language.
Should the strikes spread to other government workers and
25 Apr 58 DAILY BRIEF
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employees jr private industry, they would, as did those of
last November, result in economic disruption throughout
the island. Governor General Goonetilleke has called on
the army and navy to run essential services. Two days be-
fore the strike, he held that conditions were approaching
crisis proportions, and that a general election could lead
to the coming to power of Trotskyite N. M. Perera. Bandara-
naike has successfully weathered similar crises before, how-
ever, and a serious threat to his government has not yet de-
veloped.
by the copper question.
Chile: President Ibanez plans to ask the Chilean con-
gress to repeal the law which bans the Communist party and
may also support the proposal of left-wing presidential can-
didate Allende to increase appreciably the tax burden on US-
owned copper companies. Both moves would be in response
to the recent rise in leftist and anti-US sentiment occasioned
25 Apr 58
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II. ASIA-AFRICA
Saudis Ask That United States Flag Not Be Flown at
Dhahran Airfield-
The request by the Saudi defense minister on 16 April
that the United States discontinue flying its flag over the
American military installation at Dhahran Airfield reflects
Crown Prince Faysal's effort to implement the Saudi Gov-
ernment's recently announced policy of "positive neutrality."
The Saudi request is also in line with the specific declara-
tion in Faysal's foreign policy statement of 18 April that
Dhahran is not an American base, but a Saudi base at which
the United States enjoys certain transit and servicing facili-
ties.
Faysal apparently wants to establish a basis for recon-
ciliation with Nasir,, whose propaganda has accused the
Saudi dynasty of yielding sovereignty to alien interests.
The Saudi request is based on the contention that for-
eign flags should not fly on Saudi'soiL The American. com-
mander at Dhahran explained to Defense Minister Prince
Fahad that the present King's father had permitted the Amer-
ican flag to be flown as long as it remained imbedded in a
concrete block above ground and was not actually in Saudi
soil. The precedent may not be upheld, however, since
the objection to flying the flag is understood to be shared
by Faysal. F7 I 25X1 A
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III. THE WEST
Chilean Left Benefits From Anti-US Feeling on
Copper Question
Chilean President Ibanez may support the proposal of
the left-wing Communist- supported presidential candidate
Salvador Allende to increase the tax burdens on the US-
owned copper companies whose investments total over
$500,000,000. The proposal would also divest the US com-
panies of control over the sale of their products. This
action would be in response to increasing leftist sentiment
occasioned largely by irritation against the United States
on the copper question. This sentiment may also lead him
to propose to Congress the repeal of the law which since
1947 has banned the Communist party.
Chile, which receives 65 percent of its foreign ex-
change from copper,. has been hard hit by the drop in the
price of copper from 46 cents in 1956 to its present 25
cents per pound. These developments, added to the en-
franchisement of Communist party members, are expected
to greatly strengthen Allende's. already good chances in the
4 September presidential elections.
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DISTRIBUTION
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
Office of Defense Mobilization
Special Assistant for Security Operations Coordination
Operations Coordinating Board
Board of Consultants on Foreign Intelligence Activities
Special Assistant for Foreign Economic Policy
The Treasury Department
The Secretary of the Treasury
The Department of State
The Secretary of State
The Under Secretary of State
The Deputy Under Secretary for Political Affairs
The Deputy Under Secretary for Administration
The Deputy Under Secretary for Economic Affairs
The Counselor
Director, International Cooperation Administration
Director of Intelligence and Research
The Department of Defense
The Secretary of Defense
The Deputy Secretary of Defense
The Secretary of the Army
The Secretary of the Navy
The Secretary of the Air Force
The Chairman, The Joint Chiefs of Staff
Commandant, United States Marine Corps
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
Assistant to Secretary of Defense for Special Operations
Deputy Director for Intelligence, The Joint Staff
Assistant Chief of Staff, Intelligence, Department of the Army
Director of Naval Intelligence, Department of the Navy
Assistant Chief of Staff, Intelligence, Department of the Air Force
Supreme Allied Commander, Europe
Commander in Chief, Pacific
Federal Bureau of Investigation
The Director
Atomic Energy Commission
The Chairman
National Security Agency
The Director
National Indications Center
The Director
United States Information Agency
The Director
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CENTRAL, INTELLIGENCE BULLETIN
25 April 1958
DAILY BRIEF
I. THE COMMUNIST BLOC
25X1
25X1 A nism.
USSR-Yugoslavia: Further developments at the Yugo-
slav party congress make remote the possibility of any
Yugoslav-Soviet party reconciliation. Yugoslavia's top
ideologist, Kardelj,, diverged from the relatively mild pre-
pared version of his speech to the congress to reiterate
Yugoslav rejection of Soviet threats to read his country out
of the Communist world. He declared, along with several
other pointed remarks, that "we do not need a Marxist and
Leninist certificate issued by others" to practice Commu-
n -- -Indonesia- .-There is
ence 01 Sino-Soviet intention to become militarily in-
25X1A
xtation over reng rdtion o:
25X1A
read to overament _
pr iudtry, they would, as aaa muse ui,
last November, result in economic disruption throughout
the island. Governor General Goonetilleke has called on
the army and navy to run essential services. Two days be-
fore the strike, he held that conditions were approaching
crisis proportions, and that a general election could lead
to the coming to power of Trotskyite N. M. Perera. Bandara-
Amoma,g
25X1 A ever, and a serious threat to his government has not yet de-
volved in Indonesia. Developments continue to favor local
Communist and Sino--Soviet bloc exploitation of the situation.
A military defeat of the dissidents would not resolve the
basic issues which led to the revolt.
Ceylon: Strikes by railway, postal, and port workers
are placing considerable new pressure on Prime Minister
Bandaranaike, whose government is already plagued by