CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A003800140001-4
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 10
• Document Creation Date: December 12, 2016
• Document Release Date: June 21, 2002
• Sequence Number: 1
• Publication Date: July 5, 1958
• Content Type: REPORT

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5 July 1958
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RN CENTRAL INTELLIGENCE BULLETIN
5 July 1958
DAILY BRIEF
11100,
I. THE COMMUNIST BLOC
Communist China: Peiping insists that the US cannot
'evade " the 15- ay time limit set by the Chinese Commu-
nists in their note of 30 June demanding resumption of
Sino-American ambassadorial talks. The Chinese have
been careful, however, to avoid outright rejection of Amer-
ican suggestions of willingness to resume the talks at War-
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II. ASIA-AFRICA
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Watch Committee conclusion- -Middle East: No political
or military solution to the
Lebanese crisis is in sight.. 25
25 01
25 \ Hebei military activity has been opposed by somewhat
.s ron er
g army actions than previously. If current political ef-
forts fail to achieve an acceptable solution and fighting intensifies,
Chamoun will probably call for more extensive UN assistance
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or may request intervention by Western or friendly neigh-
boring governments under the provisions of Article 51 of the
UN Charter.
There is no evidence of Soviet bloc, UAR, or Israeli in-
tention to intervene with regular military forces.
Elsewhere in the Middle East a deliberate initiation of
hostilities is unlikely; however, serious incidents ma occur.
F
The Watch Committee dici not issue a separate conclusion
on North Africa.
of cold war tensions.
India: Prime Minister Nehru and his principal deputy in
public sta ements on 2 and 3 July deplordd the execution of
former Hungarian Premier Nagy in the strongest terms they
have yet applied to bloc affairs. Nehru's "shocked" reaction
reflects the disappointment of his hopes that recent trends
toward liberalization within the bloc would lead to a reduction
Communists ~n opposing the Dutch move.
(Page 6)
would force anti-Communist Indonesian elements to join the
Indonesia: Army chief Nasution's personal spokesman be-
lieves announcement of Dutch plans to reinforce the garrison in
West New Guinea is aimed at exacerbating US-Indonesian rela-
tions. Raising the West New Guinea issue at this time, he said,
Watch Committee conclusion--Indbnesia: Soviet bloc aid
to In onesia continues; however, there are no developments
indicating a Sino-Soviet bloc intention to become directly in-
The situation
volved in military operations in Indonesia
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continues t favor local Communist and Sino-Soviet bloc ex-
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~loitation.
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III. THE WEST
IV. SIGNIFICANT INTELLIGENCE
REPORTS AND ESTIMATES
(Available during the preceding week)
National Intelligence Estimate No. 75-58. Conditions and
trends in French Tropical Africa. 17 June 1958.
5 July 58
DAILY BRIEF ift
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1. THE COMMUNIST BLOC
Peiping Demands "Explicit" US Reply to Call For Ambas-
sadorial Talks
Peiping insists that the US cannot "evade" the 15-day
.t?ime limit set by the Chinese Communists in their note of
30 June demanding resumption of Sino-American ambas-
sadorial talks. The Chinese have been careful, however,
to avoid outright rejection of American suggestions of will-
ingness to resume the talks at Warsaw.
Peiping asserts it will press this issue in order to get
"explicit" acceptance or rejection of its demand. If the talks
are resumed, Peiping will probably use them in new efforts to
win greater concessions, chiefly a foreign ministers' meeting
on Sino-American issues and economic and cultural exchanges.
Peiping may be counting on current concern for American
captives abroad to increase pressure on Washington for a re
sumption of the talks. In speaking of the four Americans still
in Chinese jails, the authoritative People's Daily on 3 July de-
clared "there can be no question of their returning home be-
fore their terms are up"--ranging from 15 years to life.
It is conceivable, however, that Peiping now may be un-
willing to resume the talks, and that its propaganda is con-
cerned chiefly with placing the onus for their suspension on
the US. The American consul general in Hong Kong suggests
the Chinese may have decided to break off the talks, perhaps
because they showed scant sign of being productive for Peiping;
or possibly because continued ambassadorial contacts would
make it difficult to introduce Sino-American issues at any sum-
mit meeting.
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Reaction of Indian Leaders to Hungarian Executions
The public statements made on 2 and 3 July by Prime Minis-
ter Nehru and Home Minister Pant deploring the execution of
Imre Nagy constitute the strongest criticism yet expressed by
top Indian officials of Soviet bloc actions.
Pant, who also acts as deputy prime minister, told a mass
meeting on 2 July that the "murder" of Nagy was the result of a
resurrection of Stalinism in the Communist world. Referring
to countries which were "taking back" the freedom they had
given their people, Pant charged that the urge for independence
in Hungary and Poland had been thwarted.
In a press conference on 3 July, amplifying his earlier com-
ment of 23 June that the Nagy execution was "most distressing
news, both in itself and in its possible consequences," Nehru
stated that he was "shocked and worried." While hoping the
"process will not continue," Nehru added that it would be un-
fortunate if the executions were used as a reason for ruling out
a summit conference.
Official Indian reaction to recent bloc developments was ac-
curately reflected in an article by the Congress party general
secretary in the July issue of the party organ. Commenting that
the recent trend toward liberalization in Communist countries had
raised hopes of far-reaching changes in Communist methods, the
author noted that the old techniques of violence, hatred, and ter-
ror were now being revived.
Coming on the heels of the attack by Moscow and Peiping
against Tito, whose position was defended by Nehru in May, the
Hungarian executions have further alienated Indian good will to-
ward the bloc. However, Nehru is likely to continue to refrain
from taking a more positive stand, in the interest of promotin
his main objective of an East-West rapprochement..
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Indonesians Claim Dutch New Guinea Policy Aids Communists
Indonesian army intelligence chief Lt. Col. Sukendro has
told American service attaches that the Dutch announcement on
30 Tune of intended troop movements to West New plays
into the hands of the Indonesian Communists. He says anti-
Communist Indonesian elements now will have to unite With the
Communists to oppose the move. Sukendro claims Indonesia
has neither the intention nor the capability to attack 'West
Irian" since it is confident that it will eventually obtain the
area by peaceful means. In his opinion the Dutch are deliberate-
ly bringing up the New Guinea issue to exacerbate US-Indonesian
relations.
The Hague's decision to send token reinforcements to its
New Guinea, garrison is primarily intended as a general re-
assertion of its claim to the area. The Dutch are skeptical
of the success of efforts to persuade President Sukarno to limit
Communist influence in Indonesia, and they probably fear that
such efforts may eventually involve some weakening of Western
support for the Netherlands' claim.
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III. THE WEST
Canada Reviewing Recognition of Communist China
The Canadian cabinet is "rescrutinizing" its policy of
nonrecognition of Communist China, according to Ambassador
Merchant. He considers it improbable, however, that the
Diefenbaker government will reverse its policy at this time
and adds that the under: secretary of external affairs has in-
formed him privately that he shares this view.
Ottawa has periodipally reviewed the recognition question.
It was considered a year ago, shortly after the first Diefenbaker
government took office. The prime minister's public statement
last November opposing the recognition of Peiping suggested a
stronger stand than that taken by the previous Liberal govern-
ment, which insisted that it favored eventual recognition.
Commercial interests, however, have recently become
increasingly enthusiastic about the prospects of Jrade with the
Chinese Communists. The government has encouraged this at-
titude because of its desire to reduce Canada's trade imbalance
with the United States. Trade missions have been exchanged and
the Chinese Communists have intimated that trade can be ex-
panded, particularly if strategic trade controls are relaxed. Be-
cause of this interest, and in view of the Canadian recession and
heavy unemployment, the government now may be under some-
what more pressure than previously to change its diplomatic
policy toward China. The refusal of a United States automobile
company to permit a Canadian subsidiary
caused considerable public indignation.
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