CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A006300390001-9
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 16
• Document Creation Date: December 15, 2016
• Document Release Date: September 18, 2002
• Sequence Number: 1
• Publication Date: May 3, 1962
• Content Type: REPORT

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3 May 1962
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3 May 1962
CENTRAL INTELLIGENCE BULLETIN
CONTENTS
1. Indonesia: Subandrio proceeds with group to Mos-
cow. (Page i)
2. Communist China - India: Probability increases
of further clashes on border. (Page it)
4. France-Algeria: Press and public aroused over fate
of French prisoners of Algerian Army. (Page iii)
5. Yugoslavia-USSR: Belgrade acquires Soviet T-54
tanks and MI-4 helicopters. (Page iv)
6. Burma: Ne Win endorses socialism as Burma's na-
tional goal. (Page iv)
7. Portugal: Disciplined demonstrators give police hard
time. (Page v)
8. Watch Committee Conclusion. (Page vii)
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CENTRAL INTELLIGENCE BULLETIN
3 May 19&
DAILY BRIEF
Indonesia: ((Foreign Minister Subandrio, before
departing for Moscow on 2 slay, told the US ambas-
sador that the purpose of his trip was to correct the
imbalance of military power between Indonesia and
the Dutch. He said the balance now favors the Neth-
erlands
jlthough his remarks carried the suggestion of
intention to purchase new arms, Subandrio noted that
Indonesia must be careful about assuming new obliga-
tions in view of the nation's financial difficulties. He
said a "subsidiary reason" for his joining the mission,
which includes representatives of the three armed
services, was to negotiate financial terms. He did not
make clear, however, whether these terms would be
limited to new purchases or would involve a renegoti-
ation of former payments arrangements. Moscow pos-
sibly will agree to liberalize the repayment terms of
Indonesia's present arms debt and may be willing to
provide additional military assistance to Djakarta
Subandrio warned the US ambassador to expect a
cha a of tone in Indonesia's, comments on the New
Guinea situation. Sukarno and Subandrio have repeat-
edly expressed their conviction that the Dutch will re-
spond only to force or threats of force. Subandrio's
trip seems likely to serve the two lines of strategy
which Sukarno has consistently pursued on the New
Guinea issue: to prepare for an ultimate resort loll
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Boundary shown on Indian naps
- - Boundary 'Mown on recent
Chinese Communist maps
MotonBble road
-- ---- MO'.orable road
under construction
- --- Minor road or trail
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3 May 62
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force but at the same time to nudge the Dutch and
t e West t ward a peaceful settlement on Indone-
siant
Communist China - India: The probability&---
further clashes along the disputed Sino-Indian bor-
der is increased by Peiping's 30 April note to New
Delhi protesting recent Indian military moves in
the Ladakh area and charging Indian readiness to
"create another incident of bloodshed:' The Chinese
note states that Indian troops have already estab-
lished two fortified posts on Chinese soil and warns
that if these troops are not: withdrawn, China's for-
ces "will be compelled to defend themselves: 7Sne
of these is the post reportedly seized by Indirrt"roops
last weed
The Chinese note states that Peiping has or-
dered its troops in Ladakh to resume active border
patrolling, which Peiping claims it had halted two
years ago. The note warns that Peiping may "be
compelled to consider" resumption of patrols along
the entire frontier.
*Publication by Peiping of its threatening note,
which gives the Indian public its first news of the
Indian military moves in Ladakh, will increase pres-
sure on Nehru's government to maintain an uncom-
promising stance. Nehru on 2 May reported to Par-
liament on his government's negative reply to an ear-
lier Chinese note offering to negotiate. An atmos-
phere of urgency was created by Nehru's statement
on that occasion reiterating Indian determination to
strengthen defenses against the "contingency" of a
"war with China;' and a new wave of indignation over
the latest Chinese note will raise tension even further.
3 May 62
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France-Algeria: The Pompidou cabinet is under
increasingly heavy public pressure over the fate of
French soldiers who had been presumed prisoners of
the Algerian National Liberation army (ALN). The
Paris press has. reacted violently to the statement the
ALN issued on 1 May following. release of 5 French sol-
diers that there were no more prisoners and that others
should be considered "missing:' Paris Figaro suggests
that France might have to resort to partitioning Algeria.
OAS sympathizers. will be quick to pickup the Figaro sug-
gestion that the Evian solution can still be brought into
question.
3 May 62
DAILY BRIEF iii
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*The issue over the fate of French captives will
increase the threat to successful implementation of
the accords which are already endangered by the im-
patience of the provisional Algerian government (PAG)
over French failure to halt OAS terrorism against
Moslems. The PAG yesterday challenged French sin-
cerity by publicly charging Paris With responsibility
for OAS acts of terrorism which on 2 May claimed the
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highest number of casualties for one
Yugoslavia-USSR: Yugoslavia's May Day parade
showed that Belgrade has at least 20 Soviet T-54 tanks.
These have apparently been recently acquired in addir
tion to the MI-4 helicopters which 25X1
were pure se last year from the USSR. These pur-
chases end the monopoly which the West has held since
1948 on supply of new military equipment to Yugoslavia.
They also reflect in part the abatement of hostility in
Yugoslav-Soviet state relations since Tito and Khru-
shchev conferred at the UN in 1960.
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Yugoslav military officials have expressed concern
over the possible Western reaction to such purchases.
A Defense Ministry official, apparently in anticipation
of the May Day displays, told the US Army attache on
18 April that Belgrade would soon buy unspecified
amounts and types of Soviet equipment. The Yugoslavs
have also taken pains to emphasize that these purchases
do not signify a shift in Yugoslavia's political orientation
but result from a shortage of foreign exchange necessary
to buy new equipment in the West. Yugoslavia has a -
vorable trade balance with the USSR.
Burma: General Ne Win has ec are that on y
such o rms of democracy as will promote and safeguard
socialist development" will be permitted.
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Ne Win's 28-point statement, "The Burmese Way
to Socialism," delivered to the annual. Commanding Of-
ficers' Conference on 30 April, in essence restated
the national goals set forth in the constitution. and ad-
vocated by Burmese political leaders since independ-
ence. However, full implementation of these policies
would bring about major changes in Burma's political
and economic life. Ne Win said that state ownership is
to form the basis of the economy, and cooperatives or
collective ownership would be given a secondary role.
Burmese private enterprises "which contribute to na-
tional productive forces" will be permitted "with fair
and reasonable restrictions." Ne Win apparently in-
tends to limit foreign investment to joint ventures with
the government.
He stated an intention to borrow ideas abroad "with-
out discrimination between one country of origin and
another" Israel has for some time been regarded b
the Burmese as a model in annlvina sarialism_ F
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Portugal: The difficulties the police encountered
in controlling a demonstrations in Lisbon on 1 May
will encourage opponents of the regime to more aggres-
sive acts. The demonstrations were well organized and
appeared to be a show of force against the police rather
than an attempt to ignite a large city-wide manifestation.
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was impressed by the determination ancdt ac o tear o
the demonstrators, by the way their activities were di-
rected by small groups of leaders,- and by the absence
of any spirit of vandalism. Observers stress that the
demonstrators in Lisbon had not been deterred by their
knowledge of special preparations by police to cope with
the disturbances, and point to the apparent willingness
of thousands of Portuguese to follow antiregime directives
3 May 62
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Although the strikes in Oporto scheduled for
1 May did not take place, the police, with no ap-
parent provocation, sprayed peaceful crowds in
the downtown area with colored liquids and reacted
to a subsequent demonstration of some 200 workers
with unusual brutality. The US consul. in Oporto
feels that such treatment will not long be tolerated
by the public. Since early April, there have been
severs ,.reports of plans for demonstrations in Oporto
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3 May 62 DAILY BRIEF
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WATCH COMMITTEE CONCLUSIONS
n the basis. of findings by its.. Watch Commit-
tee, he. United States Intelligence Board concludes
thato
{LV Sino-Soviet bloc country intends deliberately
to ini ioate direct militar action in the immediate fu-
ture:
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NATIONAL INTELLIGENCE ESTIMATES
he United States Intelligence Board, on 2 May
1962; proved the following national intelligence es-
timate
ME
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NIE 11-9-62: Trends inAoviet Foreign Policy,"
May 19
NIE 13-4-62: ' Prospect for Communist China,"
` Mav 196-111 1
(dvance conclusions are normally distributed
within tours of approval, and the printed text within
five day n.
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French War Prisoner Issue Threatens Evian Accords
In the most recent official French statement on the Evian
accords' provisions for release of prisoners, Armed Forces
Minister Messmer said on 15 March that as of 1 January 1962
there were 197 French troops carried as "missing," and cau-
tioned that probably only a part of these were prisoners. France
began releasing Algerian rebel prisoners soon after the 19 March
cease-fire, but International Red Cross representations to the
provisional Algerian government (PAG) reportedly encountered.
only "embarrassed silences" Ambassador Walmsley in Tunis
was informed by a good ALN source on 30 April that almost all
the 500 French soldiers reported taken by the ALN during the
past year or so were killed shortly after capture "during the ex-
igencies of flight from French. Army pursuit" According to this
source, the PAG refused to so inform French negotiators at
Evian lest "this grisly information" upset the negotiations then
in progress.
Pompidou was queried on the subject in the National Assem-
bly last week, in connection with the general problem of applica-
tion of the cease-fire accord. At that time he announced that
France was suspending further release of Algerian prisoners.
The cabinet will meet on 4 May under the chairmanship of De
Gaulle to consider the war prisoner problem and other trouble-
some aspects on the Algerian situation. The Figaro criticism,
even stronger than that of the rightist Aurore, suggested that
provisional executive president Fares, now in Paris for consul-
tations with De Gaulle, might not return to Kocher Noir until he
knows whether the PAG is prepared to furnish assurances that
it will carry out the Evian accords.
Thus far French civilian and military authorities have at-
tributed most of the difficulties in implementing the agreement
to continuing OAS provocations against Moslems and to "politi-
cal infighting" within the PAG which hampered organization of
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the transitional authority in Algiers, but had not seriously
questioned the PAG's good faith. Aside from the question
of whether the PAG can soon demonstrate its control over
the ALN, the war prisoner issue could precipitate serious
doubts as to whether the PAG intends to honor other parts
of the Evian agreements, and could become a major politi-
cal threat to the Pompidou government.
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3 May 62 CENTRAL INTELLIGENCE BULLETIN Page 4
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THE PRESIDENT
The Vice President
Executive Offices of the White House
Special Counsel to the President
Military Representative of the President
The Special Assistant for National Security Affairs
The Scientific Adviser to the President
The Director of the Budget
The Director, Office of Emergency Planning
The Director, National Aeronautics and Space Administration
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 Counselor and Chairman of the Policy Planning Council
The Director of Intelligence and Research
The Treasury Department
The Secretary of the Treasury
The Under Secretary of the Treasury
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 Assistant Secretary of Defense (International Security Affairs)
The Assistant Secretary of Defense
The Chairman, The Joint Chiefs of Staff
Chief of Naval Operations, United States Navy
Chief of Staff, United States Air Force
Chief of Staff, United States Army
Commandant, United States Marine Corps
U.S. Rep., Military Committee and Standing Group, NATO
Supreme Allied Commander, Europe
Commander in Chief, Pacific
The Director, Defense Intelligence Agency
The Director, The Joint Staff
The Director for Intelligence, The Joint Staff
The Assistant Chief of Staff for Intelligence, Department of Army
The Director of Naval Intelligence, Department of Navy
The Assistant Chief of Staff, Intelligence, Department of the Air Force
The Department of Justice
The Attorney General
The Federal Bureau of Investigation
The Director
The Atomic Energy Commission
The Chairman
The National Security Agency
The Director
The United States Information Agency
The Director
The National Warning Center
The Director
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