CENTRAL INTELLIGENCE BULLETIN - 1959/09/11

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02989925
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 13
• Document Creation Date: February 25, 2020
• Document Release Date: February 27, 2020
• Publication Date: September 11, 1959

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11 September 1959
Copy No, C 63
CENTRAL
3.3(h)(2)
INTELLIGENCE
BULLETIN
DOCUMENT NO. --
NO CHANGE IN CLASS.
: DECLASSIFIED
CLASS, CI iANGED TO:
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_ REVIEWED:,
TOP SECRET
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11 SEPTEMBER 1959
I. THE COMMUNIST BLOC
USSR tries to dissociate Moscow
from Laotian and Indian border
situation in order to preserve fa-
vorable climate for Khrushchev
visit.
Chinese Nationalist artillery on
Chinmen to return Communist fire;
unusual Communist military com-
munications in Taiwan Strait area
continue.
II. ASIA-AFRICA
Laos--Government sources continue
to report Communist attacks.
Corruption in Indonesian Army head-
quarters may be leading to government
crisis.
SECRET
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III. THE WEST
Guatemala--Rightist coup plotting may
lead to showdown with government.
Bolivian President threatens resigna-
tion.
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CENTRAL INTELLIGENCE BULLETIN
11 September 1959
DAILY BRIEF
- L THE COMMUNIST BLOC
Khrushchev visit: Recent Soviet moves apparently de-
signed to dissociate the USSR from events in Laos and the
Sino-Indian border dispute suggest that Moscow is concerned
that these incidents may damage Soviet efforts to create a
favorable climate for ru hchev's visit. CSoviet diplomats
in London and Paris have termed the Laos situation
"untimely" and "inopportune" from the USSR's viewpoint In
a move to soft-pedal the Sino-Indian disputes Moscow issued
D a TASS statement on 9 September which, in a unique departure
from Soviet practice in a dispute between a Communist and a
non-Communist country, avoided an endorsement of the Chi-
nese Communist position and refrained from assigning blame
o either partys stressing the USSR's friendly relations with
both. Even so, Moscow felt bound to, include a standard con-
demnation of alleged efforts by "Western circles," especially
in the United States, to exploit the dispute as a means of ob-
strucrz a relaxation of tension on the eve of Khrushchev's
(Page 1)
Taiwan Strait: The Nationalists are increasingly sensitive
over the Taiwan Strait situation. Chinmen artillery was or
on 7 September to match Communist fire round for round.
Chinmen batteries on that date fired high explosives on main-
land targets for the first time since the heavy bombardment of
7 January. As late as 9 September unusual Chinese Communist
communications were continuing in the area.
(Page 2)
IL ASIA-AFRICA
I.aos: Government sources report continuing scattered
iA0 Communist atatcks in northern Laos, particularly in Phong Saly
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Province, and limited harassing actions against government
posts in central Laos.
*Meanwhile, rumors reported by the French Press Agency
that the Laotian Government and the Pathet Lao rebels may soon
begin negotiations lack confirmation. In the unlikely event that
the Phoui government would consider such talks, it seems prob-
able that the army would not sanction the move and would even
seize control of the government to prevent any reconciliation
with the Pathet Lao.
Indonesia. A government crisis may De developing in Indo-
nesia over the issue of corruption in army headquarters. Gen-
eral Nasution, who is concurrently chief of staff and defense
minister, (has opposed efforts by the attorney general to rein-
vestigate trade irregularities involving the army intelligence
andihas now placed the attorney general under house ar-
rest. The Communist party, which is eager to discredit army
leadership/ successfully pressed the corruption issue last Jan-
uary and can be expected to exploit the issue again.
(Page 3)
IIL THE WEST
Guatemala: (-Rightist political groups are showing increased
determination in their continuing plotting against the Ydigoras
regime, and at least one key army officer --the undersecretary
of defense--is waiting for the strategic moment to attempt a coup.
The American ambassador feels there may be "a showdown of
some sort in the offing."_
(Page 4)
Bolivia: A top official of the ruling party states that mod-
erate President Siles is determined to resign if the Senate car-
ries out a planned interpellation designed to censure a member
; of his cabinet. Although Siles has threatened similar action in
1\4- the past, the US Embassy in La Paz believes that he may be
serious in the present instance and that his actual retirement
11 Sept 59
DAILY BRIEF ii
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would be a victory for the increasingly powerful left-wing ele-
ment in the party which has consistently attacked the US-backed
stabilization effort and has called for closer relations with the
Soviet bloc.
(Page 5)
IV. SIGNIFICANT INTELLIGENCE
REPORTS AND ESTIMATES
(Available during the preceding week)
Probable Soviet Position on Nuclear Weapons Testing.
SNIE 11-9-59. 8 Sept 59.
11 Sept 59
DAILY BRIEF iii
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A
L. THE COMMUNIST BLOC
Soviet Concern Over Effect of Asian Communist Actions
On Khrushchev Visit
Recent Soviet moves designed to create the appearance of
dissociating the USSR from events in Laos and from the Sino-
Indian border dispute suggest that Moscow is concerned that
these incidents may jeopardize Soviet efforts to create a favor-
able climate for Khrushchev's visit. (Soviet Ambassador Malik,
in a talk with the British minister of state for foreign affairs,
on 7 September, remarked that the Laos situation is not only
dangerous but also "very untimely just when the program of high-
level visits is taking place and we are all looking forward to a
summit meeting."]
In a move to soft-pedal the Sino-Indian dispute, Moscow is-
sued a TASS statement on 9 September which, in a unique depar-
ture from Soviet practice in a dispute between a Communist and a
non-Communist country, refrained from assigning blame to either
party and avoided an automatic endorsement of the Chinese Commu-
nist position. The statement stressed the USSR's friendly rela-
tions with both countries and said "Soviet leading quarters" are
confident that Peiping and New Delhi will reach a peaceful settle-
ment based on mutual interests and "traditional. friendship."
As part of the effort to play down the importance of the dis-
pute, TASS added a routine condemnation of alleged attempts by
"Western circles," especially in the United States, to exploit the
situation as a means of obstructing a relaxation of tension on the
eve of Ithrushchev's visit.
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Taiwan Strait Situation
The Chinese Nationalists appear to have taken a somewhat
more aggressive stance in the Taiwan Strait area,
i) They have altered their policy on artillery fire
from the Chinmen Islands to match Chinese Communist fire
round for round. The previous policy had been to reply with
counterbattery only when the Communists fired more than 250
rounds in a single barrage. On 7 September the Nationalists
fired 52 rounds of high-explosive counterbattery fire against
the mainland, the first use of high explosive against a land
target in the strait area since the last large-scale exchange
of fire on 7 January 1959. The previous day, on 6 September,
the Nationalist South Sector air patrol, equipped with SIDEWINDER
missiles, briefly overflew the China mainland in the Chinmen
area, apparently in an unsuccessful effort to attack four MIGs
m over the mainland.
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11 Sept 59
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IL ASIA-AFRICA
Indonesian Government Crisis May Be Developing
An intragovernment conflict which has developed in
Indonesia over the issue of corruption in army headquarters
may provoke a serious crisis. General Nasution, concur-
rently chief of staff and defense minister, has opposed efforts
by the attorney general, Gatot Tarunamihardja, to reinvestigate
trade irregularities involving army intelligence chief Lt. Col.
Sukendro. These irregularities were aired last January, and
Sukendro and two other colonels aere transferred or suspended.
Sukendro has recently resumed his former post, and Nasution--
who presumably regards the case as closed--on 9 September re-
portedly placed the attorney general under house arrest on the
charge of false accusation.
(The attorney general claims President Sukarno ordered him
in late August to eradicate corruption. He also claims that first
minister Djuanda agrees Sukendro should be dismissed. A deputy
army chief of staff, however, claims Sukarno has taken no posi-
tion on specific cases and has left the Sukendro matter up to
Nasution and the attorney general)
The Communist party, which is eager to discredit army
leadership, urged prosecution of real or alleged army corruption
cases last December and January, and can be expected to exploit
the issue again. The extent to which the situation develops, or
the army loses prestige, will depend largely on Sukarno and his
willingness to support Nasution.
CONFIDENTIAL
11 Sept 59
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III. THE WEST
May Be Near in Guatemala
(Rightist political groups in Guatemala, encouraged by
rising public discontent over lack of significant achievement
by President Ydigoras and fearful of growing leftist political
strength, are showing increased determination in their plot-
ting against the regime� Plotting is centered in the National-
ist Democratic Movement (MDN), political machine of the late
President Castillo Armas, which is probably chiefly respon-
sible for the rash of nuisance bombings that have disturbed
the capital in recent weeks. The government's inability to
bring an end to the bombings, despite extraordinary police
methods, has further weakened government prestige and may,
be used by ambitious elements in the military to justify a coupD
CCol. Francisco Ardon, influential under secretary of de-
fense, is known to be involved in the plotting and to be waiting
for the strategic moment for an attempt to replace Ydigoras
with an interim military junta. The minister of defense, Col.
Ruben Gonzalez Sigui, informed the American Embassy on 8
September that he knows of certain officers who would support
a coup and added, in a comment suggesting that he himself
might not oppose such action, that he thought he had reasonably
good prospects for an influential post after a coup. The actions
of the two commanders of army garrisons in the capital area,
who are not known to be disloyal to the President, are likely to
be decisive in any attempted couii, however
(Ambassador Mallory doubts that Ydigoras will wait much
longer before forcing a showdown with the plotters, though pres-
idential aides urging him to take such action admit that the Pres-
ident is reluctant to take a strong stand. A government offensive
might well be directed not only against the MDN, but also against
the rapidly growing leftist non-Communist Revolutionary party,
which stands to sweep the November congressional elections if
present trends continue)
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Bolivian President Reportedly _threatens to Resign
(According to a top official of the ruling Nationalist Revolu-
tionary Movement (MNR), moderate Bolivian President Siles is
determined to resign if the Senate carries out a planned interpella-
tion designed to censure one of his cabinet ministers. Such a move
would probably be a resounding victory for the long-divided MNR's
left-wing element, which has consistently attacked the US-backed
stabilization effort, and could endanger the continuance of the
program. The leftists appear to have made substantial political
gains recently at ales' expense, and are calling for closer rela-
tions with the Soviet bloc and attacking the petroleum code, whieh
is favorable to foreign capital. Their recent pressures on the
government to attain these objectives carry strong anti-US
overtones and reinforce Communist propaganda campaigns
against Siles' policies)
(Although Siles--a stanch defender of stabilization measures--
has threatened to resign on previous occasions, the US Embassy
in La Paz believes that he may be serious in the present instance
and that he may no longer be able to mobilize mass support for
his continuance in office. Moreover, popular former President
Paz, chief of the MNR, who tends to favor the leftist faction of
the party, may view &les' withdrawal as the removal of an
obstacle to his re-election to the presidency in 1960.)
CONFIDENTIAL
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11.� LA 1 1/ 1 1 rik L.4
'Nov
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
Office of Defense and Civilian Mobilization
Director, National Aeronautics and Space Administration
Special Assistant for Security Cperations Coordination
Board of Consultants on Foreign Intelligence Activities
Special Assistant for Foreign Economic 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 Economic Affairs
The Deputy Under Secretary for Political Affairs
The Deputy Under Secretary 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
Commandant, United States Marine Corps
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
Assistant to Secretary of I)efense 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
CONFIDENTIAL
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