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March 17, 2020
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March 26, 2020
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November 8, 1960
%roe Approved for Release: 2020/03/13 CO2977807 TOP SECRET -4-1- 8 November 1960 Copy No. C 76 CENTRAL INTELLIGENCE BULLETIN NONUNINT NO. 7 NO ONANGE IN CL71s1"-------------�ple 0 DifILASSIFIED CLASS, CE CH-.N0 TO NEXT FL ish. VI 04 1 74 " ALTNI hit 1.,.2 rEi 1 0 JUN 1980 DATE: REVIEWER! -TOP-SECRET- WM, 7/77,77,Zi Approved for Release: 2020/03/13 CO2977807,,,,,,,,MMZ,Z0 Approved for Release: 2020/03/13 CO2977807 11111111V -1EAX111__e (% 12 CIF Approved for Release: 2020/03/13 CO2977807 Approved for Release: 2020/03/13 CO2977807 -"aMITET var � Nur 8 NOVEMBER 1960 I. THE COMMUNIST BLOC II. ASIA-AFRICA Thailand-Sarit statements welcoming Soviet economic approaches may stimu- late Thai leftist groups to greater activ- ity. Ceylon may increase trade with bloc in order to conserve sterling and to provide an economic parallel for its neutralist foreign policy. III. THE WEST 0 0 West Berlin Mayor Brandt still hopes for Berlin access guarantees from East German regime in return for renegotia-- tion of interzonal trade agreement. 0 Chile--Leftist demonstrations result in new violence. 0 SECRET Approved for Release: 2020/03/13 CO2977807 Approved for Release: 2020/03/13 CO2977807 40011 ----SEettEIT New CENTRAL INTELLIGENCE BULLETIN 8 November 1960 Fl DAILY BRIEF I. THE COMMUNIST BLOC II. ASIA-AFRICA Thailand-USSRCPrime Minister Sarit's recent state- ments welcoming Soviet proposals for economic relations were probably intended primarily to underscore Bangkok's complaint that neutrals receive better treatment from the US than does a "committed nation" like Thailand. Never- theless, Sarit's statements may stimulate leftist and neu- tralist elements in Thailand to greater activityj ) (Page 1) Ceylon - Sino-Soviet Bloc: Government officials in Colombo foresee� a significant shift in Ceylon's foreign trade In the next few months, probably resulting in expanded eco- nomic relations with the bloc at the expense of the sterling area. According to press reports, these officials ascribe the new trend to the Bandaranaike government's determination to check the recent drop in Colombo's sterling reserves and to give Ceylon's neutralism in international affairs an economic par- allel. Among the steps already taken or planned by Colombo to diversify its trade are purchases of sugar and gasoline from the USSR at prices below the world market level and an in- rease in barter trade with Communist China. (Page 3) III. THE WEST West Berlin:EMayor Brandt has informed American offi- cials in Berlin that he is at a loss to understand Chancellor Adenauer's apparent decision to take no action at this time to resume negotiations for an interzonal trade agreement. Ade- nauer is reportedly anxious to avoid doing anything whichl SECRET A / Approved for Release: 2020/03/13 CO2977807 SLCHkI Nur Cwould disturb the recent, apparent improvement in rela- tions with the USSR. Brandt, on the other, hand, feels that the cancellation of the old agreement has had a salutary ef- fect on the East German regime, and he is still hopeful of obtaining an East German guarantee of access to West Ber- lin as a precondition of a new trade agreement. He fears that with the passage of time, East German eagerness for a renewal might be reduced by success in finding alternate sources of supply for needed industrial good6j, Chile: Further violence broke out in Santiago during the labor demonstrations called on 7 November to protest the killing of at least two workers by the national police on 3 November. The government had previously put troops in Santiago on an alert status and seems fully capable of pre- venting violence from getting out of hand. Leftist elements, which seem to be more aggressive than at any time in the past three years, had called the 3 November demonstrations against the wage policy being followed in the conservative Alessandri government's stabilization program. (Page 4) 8 Nov 60 DAILY BRIEF ii o �SECRET � / A Approved for Release: 2020/03/13 CO2977807 Nor Thailand Receptive to Soviet Aid (Prime Minister Sarit's statement on 2 November that Thailand is prepared to enter closer commercial relations with the Soviet Union and to accept Soviet aid for economic development was clearly intended to underscore Thailand's complaint that "neutral" nations receive more US aid than a "committed nation" such as Thailand. Nevertheless,it will serve as an encouragement to the small left-wing and neutral elements in Thailand for increased political activity. These groups have been under severe government suppression for the past two years-.7) Lover the past year, Thailand has become increasingly dissatisfied with its relations with the United States and un- certain of the defensive value of SEATO. The Thai Govern- ment has charged that US PL-480 grain sales in Asia have undermined Thailand's foreign exchange position. Most re- cently, Thailand has felt that SEATO's handling of the Laotian crisis has been inadequate and that Thailand must rely pri- marily on itself in the event of Communist attack. There is no current intent in Bangkok to make significant changes in foreign policy but, if the state of restiveness continues, Thai- land may ultimately move toward a more neutral position.] LMoscow's recent overtures to Bangkok to establish closer relations were timed to take advantage of Thai dissatisfaction with US aid policies. rit's responsiveness to the move rep- resents a gain for Moscow in its long-term efforts to induce Thailand to adopt a more neutral positioiq Lb recent broadcasts to Southeast Asia, the USSR has sought to intensify Bangkok's feeling of isolation in a neutral- ist Southeast Asia with sharp reminders of the hazards im- plicit in such military alliances as SEATO. A 20 Octobefl SECRET 8 Nov 60 CENTRAL INTELLIGENCE BULLETIN Page 1 Approved for Release: 2020/03/13 CO2977807 -- -- Approved for Release: 2020/03/13 CO2977807 New Now Larticle in Sovetskaya Rossiya, which reflects the theme of Moscow's propaganda coverage of the Laotian crisis, charged that SEATO plans to intervene in Laos with troops based in Thailand and urged Sarit to recall the "recent U-2 and RB-47 provocations" and the consequent danger to all nations that ac- cept American military assistance:7 SECRET 8 Nov 60 CFKITRAI IKITFI I irzpwrF RI III FTIKI Approved for Release: 2020/03/13 CO2977807 Page 2 I, r L Approved for Release: 2020/03/13 CO2977807 Ceylon Ple to Expand Economic Ties Wit,..Jino- Soviet Bloc A considerable increase in Ceylon's economic rela- tions with the Sino-Soviet bloc apparently is planned as part of the Bandaranaike government's general effort to overhaul the island's trade system and to begin work on foreign-assisted projects which have gathered dust dur- ing the past year of political upheaval. The anticipated increase in exchanges with the bloc, which is not likely to be large in terms of percentage of total trade, is likely to be made at the expense of the sterling area; the bloc and sterling areas until now have accounted for about 8 and 50 percent of the island's total trade, respectively. The intended shift appears to be motivated by Colombo's desire to apply its neutral foreign policy to the economic as well as the political field. Negotiations are under way with Soviet officials in Colombo for the direct purchase of petroleum products; such products now are imported and distributed exclusive- ly by a Western consortium. Colombo has also contracted recently for 9,000 tons of sugar from the Soviet Union. Project reports for two Soviet industrial schemes planned under the Ceylonese-Soviet $30,000,000 loan agreement of 1958 were recently submitted to the government; actual construction probably will be soon. Finance Minister Dias Bandaranaike plans an extensive "shopping" tour early next year to discuss further aid offers in Moscow, the East Euro- pean satellites, and Peiping. Ceylon's intentions concerning economic relations with Communist China will become more apparent in December when Peiping% team arrives in Colombo to negotiate next year's protocol to the two countries' second rice-rubber agreement (1958-62). There are indications that Ceylon is ready to resume or even raise the level of trade which ex- isted before 1959, when the rice-rubber exchange was re- duced, particularly in view of the snags recently encoun- tered in Ceylon's rice negotiations with Burma, the island's other main supplier. Colombo probably will also begin utiliz- ing Peiping's $15,750,000 grant extended in late 1957; the government reportedly has invited a Chinese team to the is- land to reopen negotiations for a textile mill offered under the grant in 1958 and rejected a year later. -e0NRDENT-1.41,- 8 Nov 60 CMITI2A1 IKITFI I ICZFKICF RI II I FTIKI Page 3 Approved for Release: 2020/03/13 CO2977807 Approved for Release: 2020/03/13 CO2977807 CONFIDENTIAL NOP" Leftist Violence in Chile Renewed violence broke out in Santiago on 7 No- vember as hundreds of workers clashed with police during the funerals of victims of demonstrations four days earlier. On 3 November, demonstrators protesting the wage policy of the conservative Alessandri govern- ment's stabilization program attacked the national police and injured ten. The police fired into the crowd, killing two-including one reported Communist--3and injuring about 50. On 7 November, several persons were injured as the police tried to prevent the funeral procession from passing through the center of the city, according to press reports. As a result of a 24-hour strike called by the leftist Single Center of Chilean Workers (CUTCH), the country's only important labor federation, workers halted buses and streetcars, and most of Santiago's stores were closed. The government had previously decreed a state of emergency in Santiago Province, and it seems capable of preventing violence from getting out of hand. Leftist elements, which appear to be more aggres- sive than at any time in three years, sponsored the 3 No- vember demonstrations. The demonstrations followed the inflammatory, antigovernment speech of Clotario Blest, president of CUTCH and a Socialist who usually follows the Communist line, at a labor meeting protesting Ales- sandri's recent withdrawal of wage readjustment legisla- tion. The bill would have raised wages by 10 percent in partial compensation for a 40-percent increase in the cost of living since January 1959. The Chamber of Deputies had sought to triple the increase. Blest stated, "The working class should rise up in arms and repudiate this government." In an allusion to Fidel Castro, he said, "Chileans should have their own Sierra Maestra." -GONRE/ENTIAL 8 Nov 60 ("FNITRAI INITFI I ir.,..smrp RI III PTIKI Page 4 Approved for Release: 2020/03/13 CO2977807 Approved for Release: 2020/03/13 CO2977807 ....WI NI IL! 1-i L V I I Noe 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 Director, Office of Civil and Defense Mobilization Director, National Aeronautics and Space Administration Special Assistant for Security Operations Coordination Chairman, Board of Consultants on Foreign Intelligence Activities Special Assistant for Foreign Econornic Policy Executive Secretary, National Security Council The Treasury Department The Secretary of the Treasury 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 Deputy Under Secretary of State for Administration The Counselor Director, International Cooperation Administration The Director of Intelligence and Research The Department of Defense The Secretary of Defense The Deputy Secretary of Defense Assistant Secretary of Defense for International Security Affairs The Secretary of the Army The Secretary of the Navy The Secretary of the Air Force The Chairman, The Joint Chiefs of Staff 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 Commandant, United States Marine Corps Assistant to Secretary of Defense for Special Operations Director for Intelligence, The Joint Staff Assistant Chief of Staff for Intelligence, Department of Army Director of Naval Intelligence, Department of Navy Assistant Chief of Staff, Intelligence, Department of the Air Force Supreme Allied Commander, Europe Commander in Chief, Pacific The Department of Commerce The Secretary of Commerce Federal Bureau of Investigation The Director Atomic Energy Commission The Chairman National Security Agency The Director National Indications Center The Director --eeNFIDENTIAL,- Approved for Release: 2020/03/13 CO2977807 'Approved for Release: 2020/03/13 CO2977807 Nine' TOP SECRET 'kale 0 lfrAIWZ/r/r/Z, Approved for Release: 2020/03/13 CO2977807,