CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A006900120001-2
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 20
• Document Creation Date: December 14, 2016
• Document Release Date: February 21, 2003
• Sequence Number: 1
• Publication Date: March 14, 1963
• Content Type: REPORT

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/ 14 March 1963
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14 March 1903
CENTRAL INTELLIGENCE BULLETIN
CONTENTS
25
Trinidad: Cannaregio turns back when ap-
proached by Venezuelan destroyer. (Page 3)
3. USSR: Supreme Economic Council formed after
unusual meeting of top party and government
leaders. (Page 4)
25
5. Syria- Dissatisfaction exists in certain mili-
tary units, over recent coup. (Page 8)
25
7. UK-NATO: Macmillan has "searching ques-
tions" concerning establishment of NATO multi-
lateral nuclear force. (Page 10)
8. West Germany - Bloc: Exchange of West Ge -
man - Polish trade missions may lead to e
panded relations between Bonn and European
j
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9. Indonesia: Djakarta sets deadline for conclu- 0
Sion of oil contracts with Western companies.
(Page 12)
10. Notes: R;. USSR-NATO; Honduras -
Costa Zca; Argentina. (Page 13)
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INN NE 001 No IN ME 010
satellites. (Page 11)
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SCALE OF MILES
POSITION OF CANNAREGIO
AT 2000 HRS E S T
13 MARCH
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*Trinidad: The Italian freighter Cannaregio,
which has been under surveillance because of aa re-
port it might be carrying materiel from Cuba to
Venezuelan dissidents, doubled back and anchored
for 15 hours when closed by a Venezuelan destroyer
off Trinidad on 12 March,
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After anchoring in the Gulf of Paria off Port
of Spain,the Cannaregio got under way in mid-
afternoon 12 March and was reported by the US de-
stroyer escort Claud Jones to be heading north "fast"
out of the Dragon's Mouth passage. Its normal
cruising speed from Cuba has been seven or eight
knots; the maximum is about 11 knots.
When the Venezuelan destroyer General Flores
closed the Cannaregio, it turned back and reanchored.
At one point the Claud Jones reported "barges. along-
side and much activityThe Cannaregio finally sailed at 0630 EST
13 March, and at noon was reported between Trini-
dad and Tobago on a heading slightly north of. west.
The commander of the Venezuelan destroyer reportedly plans to board the Cannaregio when it en-
ters Venezuelan territorial waters.
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*USSR: The announcement of the creation of a
new Supreme Economic Council apparently follows
a major review of Soviet policy at an unusual meeting
of the top party and government officials.
Although a reallocation of resources in favor
of the military is a possibility., there is as yet insuf-
ficient information at hand to reach a firm conclusion.
This new institution may have only been superimposed
on the existing administrative apparatus for the stated
reasons,', .. to guide and consolidate the work of the
national planning agencies and the industrial and con-
struction committees.'
The head of the new council, Dmitry Ustinov,
who has had a long career in armaments and mis-
siles, suggests a broadening of military demands
on the economy. However, Khrushchev in November
praised the administrative centralization within the
defense industries and spoke of the need for other
parts of industry to follow this example. Ustinov
would be a logical choice to implement this exten-
sion.
The announcement also indicated, but without
detail,. that a new Five-Year Plan is to follow the
present Seven-Year Plan which terminates at the
end of 1965. Plans for the last two years of the
Seven-Year Plan are to be prepared concurrently
to provide continuity between short and long-term
planning, a procedure called for late in 1960.
The announcement stated that this planning is
to be based on the decisions taken at the party ple-
num last November and the "tasks" outlined in the
Twenty-Year Plan announced in' October 1961.
These documents reaffirmed the priority of heavy
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industry but called for some improvement in con-
sumer welfare. However, Khrushchev's 27 Feb-
Iruary speech to his electors[--
reflected concern over the heavy defense buraen
carried by the Soviet Union. He strongly implied
that the priority for the consumer which has been
downgraded in the last year or two stands no chance
of reinstatement in the near future. I
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Dissatisfaction over the 8 March coup
*Syria: (I
existing in certain army and air forep units poses
elements)
(The new Baathist- dominated regime is threat-
Some of this discontent appears to stem from
6
fear that Syria's new leaders may go too far in their
overtures toward unity with the UAR. Although a
majority of the present cabinet as well as a consid-
erable body of army opinion opposes close union
with the UAR2 recent pro-Nasir demonstrations
throughout the country have alarmed anti-Nasir
a potential, threat to the new regime;)
ened from two sides- -pro- Nasir elements pushing
for full union with Egypt and conservative forces
which oppose both the Baath and Nasir, Both groups
have adherents in.the army who could spark a cou~).
(There is also the danger of serious dissension
among Baathist, pro-Nasir, and unaligned national-
ist elements within the new regime itself.)
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UK-NATO: (Macmillan has reaffirmed to Am-
bassador Merchant his strong support for the Nassau
understanding, but has given the impression that
London still has some searching questions to ask
regarding the establishment of a NATO multilateral
nuclear force.
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Regarding the US preference for surface mis-
sile ships in suchafor_ceY Macmillan expressed the
fear that such ships might become intermingled
with merchant vessels, and thus might cause seri-
ous difficulties for commercial shipping in periods
of tension. He emphasized British special depend-
ence on seaborne trade.)
Macmillan and Foreign Secretary Home agreed
hat Germany must be handled on a basis of equality
ithin a multilateral nuclear force. Home suggested,
owever, that if the US intends to transfer the pos-
ession of nuclear warheads, it might be better to
o so to NAO as a whole .rather than to any smaller
nner group.)
t In other discussions between Merchant and
ord home.. the foreign secretary appeared a good
eal more skeptical of the need for the multilateral
orce to satisfy the nuclear aspirations of the Euro-
eans. While he thought that no other European
ountry would tolerate control of the force by ma=
ority rule with the Germans as participants, he
uestioned whether the force would be credible if
nanimous consent for its use is required. He also
uggested that failure to include the French in the
ommand-control strut re might lead to an "out-
ight break" with Paris
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West Germany Bloc: The recent agreement
between West Germany an Poland to exchange
trade missions is likely to be followed by a further
expansion of Bon ?s relations with other East Eu-
ropean satellite
,
then, perhaps, to the handling of consular affairs)
(The agreement provides that the trade missions
wil have semi-diplomatic privileges. Both Bonn
and Warsaw reportedly anticipate that the functions
of these missions can be extended at some future
date, first into the area of cultural exchange
and
'Bonn is hopeful that other bloc countries will
be encouraged to work out similar arrangements
with West Germany. The prospects of an early
agreement wit Hungary are regarded as particu-
larly favorable.
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Indonesia. (Djakarta has set a deadline of 24
March for conc usion of contracts with major West-
ern oil companies operating in Indonesia
government has told the companies that if
(ihe
they are unable to reach agreement within the time
limit, it will "have to consider other appropriate
arrangements and govern itself accordingly:' Ac-
cording to a Stanvac official, government demands
regarding foreign exchange and the companies' sales
in Indonesia have the effect in practice of reducing
the proposed formal 60-40 pr fit split in favor of
Indonesia to 70-30, or worse
The UN oil adviser in Indonesia believes there
is no immediate threat that Indonesia will nationalize
the companies' properties, He considers that if the
companies agree to an Indonesian take-over of dis-
tribution facilities in five years and of refineries in
15 yea s the government will compromise on other
issue
During the two years of negotiations with the
companies, Indonesia has made preparations on a
minor scale to introduce Soviet bloc assistance into
the oil industry. More recently, Communist China
reportedly has offered to buy Indones'an crude oil
but its processing capacity is limited)
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NOTES
USSR: Several Westerners who have met with
USSR-NATO: NATO restrictions on the sale
his first extended leave since late last summer.
viet leader has told the Indonesian ambassador that
he will depart for a Black Sea vacation on 15 March--
Khrushchev in the past week have commented that
he appeared to be tired and preoccupied. The So-
aracterized the restrictions as "self-defeating"
ritish and German ambassadors, Khrushchev
of large-diameter pipe to the USSR continue to ir-
ritate Moscow. In conversations last week with the
and claimed that large-diameter pipe is available
in the USSR in quantities sufficient to allow export.
There are in fact only two plants in the USSR pro-
ducing 40-inch pipe, and their combined output is
insuffi ient to meet even current domestic require-
ments.
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Honduras - Costa Rica: (One of the two officials
ro-Communist. He is Francisco Lagos, who was
rence in San Jose, Costa Rica, is a prominent
President Ramon Villeda at the forthcoming con-
who will be handling public relations for Honduran
removed from his position as librarian at the Uni-
versity of Honduras in July 1962 because of com-.
plicity in a Communist-inspire attempt to win a
student election through fraud.
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*Argentina: Police and army personnel in the
greater Buenos Aires area were put on special alert
late last night, apparently as a precaution against
any possible disturbances by forces opposed to
recognition of the Peronist Popular Union Party.
Military authorities made several arrests of sus-
pected plotters last weekend. Police described the
.latest security measures as preventive in nature,
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 Approved For Relea
THE PRESIDENT
The Vice President
Executive Offices of the White House
Special Counsel to the President
The Special Assistant for National Security Affairs
The Scientific Adviser to the President
The Director of the Budget
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
Commander in Chief, Atlantic
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 Indications Center
The Director
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