CENTRAL INTELLIGENCE BULLETIN - 1961/06/06

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02049795
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 17
• Document Creation Date: August 14, 2020
• Document Release Date: August 27, 2020
• Publication Date: June 6, 1961

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6 June 1961
Copy No, C
CENTRAL
.6 0
INTELLIGENCE
BULLETIN
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6 June 1961
CENTRAL INTELLIGENCE BULLETIN
CONTENTS
1. Laos. (Page i)
2. Dominican Republic. (Page tt)
3. Congo: Gizenga's control in Kivu Province weakening;
negotiations reported beginning between Leopoldville
and Katanga. (Page tv)
4. Paraguay: Communist front plans disturbances during
Ambassador Stevenson's visit on 1.2 and 13 June. (Page tv)
5. Japan: Decline in foreign exchange reserves results
in new pressures against Ikeda's economic program.
(Page tv)
6. UAR: Poor Syrian wheat crop expected; Cairo prob-
ably to urge continued PL-480 shipments from US.
(Page v)
7. Zanzibar: Violence spreads despite air-borne rein-
forcements from Kenya and Tanganyika.. (Page v)
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6 June 61 CENT RAL INTELLIGENCE BULLETIN Map Page
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CENTRAL INTELLIGENCE BULLETIN
6 June 1961
DAILY BRIEF
Laos: (general Phoumi, outlining to Ambassador Brown
the strategy he contemplates in forthcoming talks with Sou-
vanna Phouma and Souphannouvong, stated that he would in-
sist on reaching agreement on an effective cease-fire and
the kind of guarantees necessary for Laotian neutrality be-
fore he would be willing to take up the formation of a govern-
ment of national reconciliation. Phoumi added that the Neo
Lao Hak Sat would have to be given representation in such a
government, since otherwise "there could be no peace in Laos."
Phoumi expects to leave for Nice, the projected site for the
talks, on 6 June. Prince Boun Oum is now in Paris, while
Souvanna and Souphannouvong are in Peiping, enroute to
Geneva3
dhe enemy resumed shelling of the government Meo posi-
tions in the Pa Dong area on 4 June, and early today Pa Dona
was reported to be under "extremely heavy" enemy fire:
an attack on Pa Dong could be launched on 5 or 6
June, if additional supplies were brought up.
(Backup, Page 1) (Map)
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*Dominican Republic: General "Ramfis" Trujillo is be- n K
lieved-tobe purging the armed forces of officers of doubtful
loyalty. According to information
by recent travelers in the Dominican Re- IT �P'
public, General Fernando Sanchez, chief of staff of the army,
has been arrested and 65 Dominican Air Force officers have
been jailed since 31 May.
underground groups have been "com-
pletely disorganized" by the recent arrests. He added that
they are afraid of one another and do not know whom they can
trust. The fact that American newsmen were permitted to
travel into the interior on 4 June suggests that there is no open
dissident action there. All indications are that the government
is in complete control throughout the country.
American Consul Dearborn, after a conversation with
President Balaguer on 4 June, commented that the President
"is showing some spunk," but is still far from being: an inde-
pendent agent. Balaguer reportedly seemed sincere in express-
ing his desire to create democratic conditions in the country
but appeared uncertain whether General "Ramfis" Trujillo and
associates would-perniit himktosdo so. The consul believes the
President might ask for US military support if his program is
obstructed by "Ramfis." In his conversation with the consul,
Balaguer confirmed earlier dissident reports that he had threat-
ened to resign from the presidency rather than to accede to a
request from "the armed forces" to expel Roman Catholic
Bishops Reilly and Panal.
Dissident groups feel that Balaguer, whom they regard as
weak and corrupt, will probably continue to be dominated by
the Truiillo family
most dissidents
would probably accept him as Presictent ii tins would end the
current regime's terrorism. Though he has been a Trujillo
"lackey" for many years, Balaguer is usually regarded as not
havilig been associated with the regime's cruelties.
LThe American Embassy in Caracas reported on 3 June that
leaders of the Venezuelan armed forces enthusiastically support"!
6 June 61
DAILY BRIEF ii
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LPresident Betancourt's plan to make available planes, ships,
and troops in a joint effort to thwart any attempt by the Cubans
to invade the Dominican RepublicZ Betancourt told Ambassador
Stevenson on 4 June he believed that the team of OAS observers
would find innumerable violations of human rights in the Domini-
can Republic, and that an emergency meeting of American foreign
ministers should then be convened with the purpose of agreeing
on stronger sanctions against that country. Betancourt believes
that successful OAS action in the Dominican case could provide
the basis for a later solution of the Cuban problem. On 5 lune,
the official Dominican radio resumed its vicious attacks against
the Venezuelan President.
6 June 61
DAILY BRIEF
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Uri
Pointe
Noire
Banana
Gemena.
Scattered Force
MOBUT U
LIBERIA
200
INDIA
TUNISIA I ETHIOPIA
3,200 200
NIGERIA
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GHANA
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Approximate area nominally controlled by:
Luanda Kasavubu-Mobutu
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E-1 United Nations Forces (Service Forces
� Selected load not included)
Selected railroad,
4-r- Selected airfield
(,) STATUTE MILES .
4040
Luputa
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ETHIOPIA
1,500
ETHIOPIA
MALAYA
500
INDIA
A
INDIA
Kongolo
Kabalo
Albertville
NIGERIA
600
�Manono
t�,
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7,000
Elisabethville
A
6 June 61 CENTRAL INTELLIGENCE BULLETIN Map Page
NIGERIA
Usumbura
IRELAND
650
SWEDEN
870
-
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Congo: dications that the Gizenga regime may be losing
its hold on Province have coincided with the reported be-
ginning of negotiations between the Leopoldville and Katanga
governments p The action by the Kivu provincial assembly in
refusing a vote of confidence to Gizenga's hand-picked provin-
cial president on 2 June is a serious reverse for the Stanley-
ville regime. Although Gizenga is in nominal command of suf-
ficient troops to restore his authority in the Bukavu area, their
reliability is suspect. A UN official has reported that troops
in Stanleyville appear restless, and may not have received full
pay
the Leopoldville government
has responded favorably to an earlier communication from Ells-
abethville in which Tshomb4's subordinates indicated that Katanga
was prepared to participate in a Congo federation as envisioned
by Kasavubu. Areas of disagreement--which include matters
relative to the control of the Katanga army, the employment of
Katanga's B elgian technicians, and the attendance of Katangan
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aParaguay: The'Commumst-aommatea umtea teront ior
ra-
tional Liberation (FULNA) plans to create disturbances on 12 and
13 June during Ambassador Stevenson's stop in Paraguay on his
South American tour. FULNA, a small but active revolutionary
group, has reportedly ordered its members to promote tension 0
among labor and student groups, and it will issue pistols to some
members to combat the police. Such efforts to promote disturb-
ances may fall on fertile ground, because discontent with the
Stroessner dictatorship is already at a high level following the
governme pression of opposition demonstrations in
mid-May. (Backup, Page 3)
Japan: Deterioration of Japan's international balance of pay- 0,4/
ments, which in May led to the first loss of foreign exchange
6 June 61
DAILY BRIEF iv
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reserves in four years, poses a threat to Prime Minister Ikeda's
political position and his expansionist economic program. Con-
servative political and financial elements have for some months
been uneasy about Ikeda's program, and pressures are now in-
creasing for deflationary measures. Ikeda is expected to oppose
these pressures at least until after his visit to the United States
late this month. A continued deterioration is likely to prompt
the prime minister's rivals in the ruling Liberal-Democratic
party to attack him by raising the specter of a financial crisis.
Despite the decline in May, which amounted to only $72,000,000,
Japan's foreign exchange reserves still total about $2 billion.
UAR: The fourth consecutive year of adverse weather has
again severely limited Syrian wheat production. Earlier esti-
mates of a crop approaching 900,000 tons have now, as the har-
vest approaches, been cut in half. Syria's annual consumption
requirement is about 700,000 tons. The shortage is a setback to
Cairo's hopes for improving Syria's lagging economy and may add
to the Syrian discontent that has plagued the Nasir regime since
formation of the UAR in 1958. Cairo has been counting on a
Syrian surplus to assist in meeting Egypt's needs for grain. The
shortfall in the Syrian crop will necessitate imports of wheat into
Syria as well as Egypt, and Nasir will now probably seek a con-
tinuance of US PL-480 shipments to both regions of the UAR.
(Backup, Page 4)
C
Zanzibar:atioting in this British protectorate following the
closely contested 1 June legislative elections has already claimed
some 50 lives. The situation as of 5 June reportedly was rapidly
deteriorating and disturbances were spreading from Zanzibar town
to outlying areas in a full-fledged racial conflict between minority ok
Arabs and the more numerous Africans. Air-borne reinforce-
ments from Kenya and Tanganyika have bolstered the island's se-
curity forces to about 1,500 men. Ali Muhsin, Arab leader of the
Communist-infiltrated Zanzibar Nationalist party which, with its)
6 June 61
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ally the Zanzibar and Pemba People's party, controls 13 of
the 23 seats in the legislature, has been asked to form the
government. Before the election he strongly attacked the
presence of an American space-tracking installation on the
island, and the American consul general in Dar es Salaam
has reported that during the worst of the rioting, the space
Installation vas without adequate police protection--.1
6 June 61
DAILY BRIEF
vi
--T0p-sEGRE4_ PE
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a wa
The Situation in Laos
LPhoumi apparently is hopeful that Souvanna will be more
amenable to meaningful negotiations once he is away from the
atmosphere of Xieng Khouang, heavy with the presence of the
Pathet Lao, and in the more neutral surroundings of Nice or
Geneva. He indicated to Ambassador Brown in their 3 June
conversation that he would first try to talk to Souvanna alone
in an endeavor to find out if Souvanna still adhered to his long-
standing position in favor of a genuinely neutral and independ-
ent Laos. Phoumi is inclined to give some substance to re-
ports of friction and differences between Souvanna and Souphan-
nouvong:1
CTurning to questions relating to the cease-fire, Phoumi
confirmed that he had agreed to limit future resupply of the
Meo garrison at Pa Dong to non-munition items if the other
side permitted the ICC to establish an observation team at
Pa Dong. He stated that his supply position at Pa Dong was
strong and that if shooting did not in fact stop he would feel
free to replace any munitions expended in self-defense:\
The ICC for some days has been trying to negotiate with
the Souvanna group, the Pathet Lao, and the royal government
for the establishment of an observation team at Pa Dong. Sou-
vanna to date has qualified his willingness to permit such a
team with the proviso that all government reinforcements
brought into Pa Dong after the 3 May truce be withdrawn, a
condition certain to be rejected by Phoumi.
� The 5 June session of the Namone tripartite talks was
postponed until the 7th, reportedly at the request of the gov-
ernment delegation, which pleaded press of business. The
Namone talks are likely to limp along in an at best perfunctory
manner pending conclusion of the Souvanna - Souphannouvong
Boun Oum - Phoumi talks in Europe.
there
were some Chinese Communist artillery specialists with a force
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Now,
of about 270 North Vietnamese and Pathet Lao troops stationed
in a defensive position about ten miles north of Mahaxay in
south-central Laos. �There have been several reports of the
presence of Chinese elements in southern Laos, but these lack
confirmation.
(There was no airlift activity on 4 June and only a relatively
few sorties were scheduled for 5 June. Bloc airlift operations
continue to be scheduled through 6 June:3
@he Soviet IL-18 transport en route to North Vietnam from
) Moscow arrived at Haiphong on 4 June, The Soviet IL-14 en
route to North Vietnam from Moscow on a cargo mission was
scheduled to fly from Peiping to Hanoi on 5 June, The Soviet
AN-10 which arrived at Canton from the USSR via Peiping on
3 June returned to Peiping the same day and continued on to
Irkutsk on the morning of 4 June, Six Soviet LI-2s which ar-
rived at Canton from Hanoi on 1 June returned to Hanoi on 4
June
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The Political Situation in Paraguay
President Stroessner, who seized power in Paraguay in
1954, has over the past three years been increasingly wor-
ried about his position as the only remaining dictator in South
America, and has made a number of tentative moves toward
lifting political restrictions and improving the regime's public
image abroad. He has also made some efforts to engage vari-
ous opposition groups in discussion of the problem of political
liberalization in a country which has long been under the rule
of a single party supported by the military. Such talks have
never materialized, however, because of mutual distrust, and
because extremists among the opposition are intent on thwart-
ing any conciliatory move.
Since early 1961 the government has encouraged new oppo-
sition newspapers and permitted opposition meetings, despite the
strong condemnation of the regime voiced through these media.
The police chief authorized the major opposition Liberal party
youth group to hold a meeting on 22 April with the proviso that
it condemn the Communists as well as the government. Labor
Day celebrations on 1 May were taken over by dissident labor
leaders, and government speakers were jeered from the rostrum.
These developments encouraged outspoken criticism and unauthor-
ized demonstrations by more than 1,000 students and members of
opposition groups in mid-May. Attacks on the demonstrators by
pro-government partisans led to a riot.
The resulting arrests and beatings produced a stronger than
usual public reaction, according to the American Embassy in
Asuncion. As a reflection of its nervousness, the government
closed the university temporarily, banned one newspaper, and
renewed special security restrictions for 90 days.
6 June 61 CENTRAL INTELLIGENCE BULLETIN Page 3
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Syria Faces Continued Wheat Shortage
The final estimate on Syria's current wheat crop is ex-
pected this week from the official Syrian Cereals Office in
Damascus; the office told the American consul general on
1 June that it believed the crop would range between 400,000
and 500,000 tons. A much more pessimistic prediction--about
200,000 tons--has been made by the secretary of the Chamber
of Commerce in Aleppo--in Syria's agricultural heartland.
Most of the crop damage occurred as a result of unsea-
sonable heat in Syria's largest grain-growing area the "Jazira,"
east of Aleppo. Winter rains had brought good growth, but hot
winds in April dried the grain before it matured. Crops in three
previous years had suffered from a lack of winter rains.
Only 1,240,000 of Syria's more than 11,000,000 acres of
farming land are irrigated. Substantial progress is being
made, however, on a five-year plan (1960-1965) for greatly
expanding irrigation, largely with Communist bloc help.
Syria's commercial class, already resentful of Nasir's
economic control measures, will probably be further irritated
by the effect another poor wheat crop will have on much of Syria's
commercial activity.
The combined Syrian and Egyptian production for the new
fiscal year 19614962 will probably be about 1,650,000 tons
short of the UAR domestic requirement of 3,600,000 tons. US
PL-480 wheat and wheat flour made up about 85 percent of the
UAR's import requirements during 19604961, Syria receiving
250,000 tons valued at $17,000,000 and Egypt 1,100,000 tons worth
$71,200,000.
CONFIDENTIAL
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1..A/Vir 1
Now'
THE PRESIDENT
The Vice President
Executive Offices of the White House
Counsel to the President
The Special Assistant for National Security Affairs
The Scientific Adviser to the President
The Director of the Budget
The Director, Office of Civil and Defense Mobilization
The Director, National Aeronautics and Space Administration
Chairman, Board of Consultants on Foreign Intelligence Activities
The Department of State
The Secretary of State
The Under Secretary of State
The Director, International Cooperation Administration
The Deputy Under Secretary of State for Political Affairs
The Deputy Under Secretary of State for Administration
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 to Secretary of Defense (Special Operations)
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, 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
CONFIDENTIAL
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