CENTRAL INTELLIGENCE BULLETIN - 1960/12/28

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02993706
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 11
• Document Creation Date: March 17, 2020
• Document Release Date: March 26, 2020
• Publication Date: December 28, 1960

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28 December 1960
Copy No. C
CENTRAL
INTELLIGENCE
BULLETIN
67)
DOCUMENT NO. -
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DAtCP JUN 1980 REVIEWER*
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28 DECEMBER 1960
I. THE COMMUNIST BLOC
II. ASIA-AFRICA
Burmese - Chinese Communist secret
agreement authorizes troops of both coun-
tries to operate against Chinese Nation-
alist irregulars up to 15 miles on either
side of border. 0
Nasir rejects proposal for guaranteeing
private and foreign investments in Syria
against nationalization.
Nepali Communist party reportedly
divided in its interpretation of King's
takeover of government.
The situation in Laos.
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CENTRAL INTELLIGENCE BULLETIN
28 December 1960
DAILY BRIEF
I. THE COMMUNIST BLOC
II. ASIA,AFRICA
Burma - Communist China:a3rigadier Aung Gyi,
Burmese vice chief of staff, has confirmed the exist-
ence of a secret Sino-Burmese agreement--resulting
'from the recent border treaty,authorizing troops of both
countries to operate against Chinese Nationalist irregu-
lars up to 15 miles on either side of the border. Aung Gyi
says about 2,000 Chinese Communist troops have been op-
erating in Burma since late November.
Communist
troops have not pursued the irregulars after driving them
from this border zone, the armed irregu-
lars do not intend to retreat into Laos.
(Page 1)
UAR-Syria: Nasir,
has flatly rejected a proposal tor a
decree guaranteeing private and foreign investments in Syria
against nationalization. e proposal was made by UAR Vice
President Nur al-Din Kahhalah, who is in charge of planning
for the Syrian Region and who is convinced that without such a
guarantee, there is no hope of fulfilling the ambitious Syrian
economic development planlj
On 23 December, Nasir concluded a major policy speech
by lashing out at "exploiters and profit seekers" in the UAR
business community and threatening to "liquidate" their activ-
ities. Prolonged foot.. dragging by Syrian private investors
could deal the shaky economy a serious blow and thus further
complicate Nasir's political problems in the northern region.
(Page 2)
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Nepal; The Communist party in Nepal is reportedly di
i -
vided n its interpretation of King Mahendra's 15 December
takeover of the government. One wing views the King's move
as a swing to the right, while the other argues that the King's
ouster of the Nepali Congress government will actually help
the Communist party. Mahendra is reportedly withholding ac-
tion against the Communists at least for the time being, Sev- K.
eral of the party's top leaders, en route home from the Moscow
conference, are in India; those in Nepal were not arrested in
the King's roundup of politicians. The moderate composition
of the King's caretaker council of ministers, announced on 26
December, may strengthen the1 Communist faction which is urg-
ing opposition to the King's "rightist" actions.
Laot:" The Soviet altbassador in Cambodia/ apparently is
encouraging Souvanna Phouma to resist Western pressures fo.
his formal resignation as prime minister of Laos; his resigna-
tion would undercut the bloc's efforts to justify support for Kong
Le and the Pathet Lao on grounds that Souvanna heads the legal ef)
government. Souvanna reportedly has met privately, with Soviet
officials, including Ambassador Abramov, in Phnom Penh on at/,,..�)
least two occasions within the past few days. These diplomats ,10.,t %
also may be seeking to convince Souvanna that he should recon- 4
sider his rejection of a Neo Lao Hak Sat invitation to come to it Sam Neua.
Seven Soviet AN-12s flew to North Vietnam from Canton on
27 December�the first military cargo planes to do so. Six of
these aircraft landed at Haiphong and one at Hanoi; at least two
of these large transports have left North Vietnam.
In Laos an unarmed American diplomatic aircraft, conduct=
ing an observation flight about 70 miles north of Vientiane with
the concurrence of the Laotian Government, was damaged by
small caliber fire on 27 December. A Soviet IL 14 directly be-
neath the American plane was in the process of making airdrops
to rebel ground forces in the area and may have fired at least
some of the shots. (Page 3)
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28 Dec 60
DAILY BRIEF ii
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Burmese Akiweement Permits Chinese Comm...list Military
Activities in Burma
DrigaditOr Aung Gyi, Burmesb vice chief of staff, has
confirmed reports that about 2,000 Chinese troops are operat-
ing against Chinese Nationalist irregulars in the China-Burma-
Laos border area. These operations have been undertaken,
he stated, under a secret military agreement--resulting from
the Sino-Burmese border treaty--which he signed in Peiping
in October. Troops from both countries have been authorized
to operate up to 15 miles on either, side of the border; he
claimed that the Chinese Communists have inflicted heavy cas-
ualties on the irregulars.�
The agreement is said to have been drafted at Aung Gyi's
initiative; he reportedly guaranteed to the Chinese that their
military actions would receive no publicity in Burma. Only
a handful of Burmese officials know of the agreement, and
even Prime Minister Nu professes not to have been officially
informed. Nu stated flatly in a press conference on 20 De-
cember that there was no agreement, and that if there were
Chinese Communist troops in Burma who refused to leave,
"they would be driven out." Official acknowledgment of this
military cooperation would arouse widespread apprehension
in Burma3
So far, the agreement appears to be of a temporary
nature, restricted to tiv protection of the joint Sino-Burmese
demarcation teams operating in the eastern Shan border area.
However, it appears that the Chinese Communists have taken
the initiative in attacking groups of KMT irregulars within
the border area.
neither the Chinese Communists nor, the
Burmese have pursued the irregulars outside the immediate
border zone, discounted reports that the armed ir-
regulars, estimated at 3,500, plan to retreat into Laos. He
asserted that only noncombatants and a field hospital have
been withdrawn from Burma into Laos..:
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Nasir La.beliyrian Business Community "Emtloiters"
flatly rejected a Syrian proposal for a
government decree guaranteeing private and foreign invest-
ments in Syria against nationalization. The proposal was made
by UAR Vice President Nur al-Din Kahhalah, a Syrian, who is
in charge of planning for the Syrian Region and who is convinced
that without such a guarantee, there is no hope of fulfilling the
ambitious Syrian economic plant)
L.For months Syrian officials have attempted to persuade
businessmen to cooperate in getting the region's ambitious
Five-Year Plan under. way. Private investors are scheduled
to provide about 60 percent of total planned investment. How-
ever, Syrian businessmen have refused to participate, despite
official oral reassurances, without a written guarantee against
Egyptian-inspired nationalization. In late December. the Syrian
executive council, after lengthy debate, forwarded its recom-
mendation to Cairo that such a decree be issued._,
Nasir's reaction was swift and decisive. He chose the clos-
ing moments of his 23 December speech celebrating the 1956
"victory" over France, Britain, and Israel to lash out at Syrian
� capitalists, labeling them "exploiters and profit seekers" and
threatening their liquidation, Two days later,
Nasir denounced the Syrian executive coun-
cil s recommendations point by point. He not only refused to con-
sider a decree protecting private investors but went even further.
He said that he did not order or accept government statements
repeatedly begging private capital to participate in the plan,
Nasir's reaction is likely to confirm Syrian suspicions of
Cairo's ultimate goal of controlling all Syrian economic activity.
Prolonged foot-dragging by Syrian private investors could deal
� the shaky economy a serious blow and thus further complicate
Nnsiriq nnHti1 nrobleMS in the northern regiol)
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Situation in Laos
Souvanna Phouma has met with Soviet officials,
including Soviet Ambassador Abramov, in Phnom Penh on at
least two occasions within the past few days. Moscow is ap-
parently making a strong effort to encourage Souvanna to re-
sist Western pressure for a renunciation of his claims to rep-
resent the legal government of Laos. A formal resignation by
Souvanna as prime minister of Laos would undercut the bloc's
efforts to justify support for Kong Le and the Pathet Lao on
the grounds that such assistance is being given to a legal gov-
ernment.
The Soviet diplomats also may be urging Souvanna to re-
affirm publicly his claim to head the only legitimate Laotian
government and to endorse the Soviet proposal to reactivate
the ICC for Laos. Moscow would regard such a statement as
greatly strengthening its political maneuvers as well as any
future demand for UN consideration of "US imperialist aggres-
sion" in Laos. In addition, the Soviet diplomats may have asked
Souvanna to reconsider his previous rejection of a Neo Lao Hak
Sat invitation to establish himself in the Pathet Lao stronghold
of Sam Neua.
An unarmed diplomatic aircraft of the American air attache
in Saigon, who is also accredited to Laos, was fired upon on 27
December while flying reconnaissance over the Vang Vieng area,
about 70 miles north of Vientiane. The C-47.aircraft, whose mis-
sion had the full concurrence of the Laotian Gsvernment, had been
in the area for some time. A Soviet IL-14 was below the American
aircraft and was engaged in airdrops to rebel ground forces at the
time the American plane was fired on. At least some of the firing
may have come from the IL-14. One motor was damaged and there
were many bullet holes in the fuselage. No crew member was in
and the plane landed safely in Vientiane.
Seven Soviet AN-12 heavy transports flew to North Vietnam
on 27 December as scheduled. Six flew. to Haiphong and one to
Hanoi. Some of them apparently were unloaded immediately, since
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they began returning to Communist China less than two hours
after landing. These seven AN-12s could have ferried in be-
tween 105 and 140 tons of cargo, which will probably be flown
into Laos aboard the Soviet IL-14s and North Vietnamese trans-
ports which have been engaged in lift operations between Hanoi
and points in Laos.
Both Soviet and North Vietnamese transports continued to
be scheduled for flights into Laos through 26 December. Four
Soviet IL-14s were scheduled on 26 December to fly two round
trips each from Hanoi to Sam Neua. Seven flights by Soviet
IL-14s were scheduled for the Vang Vieng drop zone north of
Vientiane. At least one North Vietnamese transport was sched-
uled for a flight to the Yang Vieng area. The total of confirmed
flights into Laos by Soviet IL-14s between 3 and 26 December
is now 122.
arms, munitions.
droppec2:3
rice, ana nallic are being airdropped.
"cannon and mortars" are also being
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*iloW Nure'
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 Economic Policy
Executive Secretary, National Security Council
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 Treasury Department
The Secretary of the Treasury
The Department of Detense
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
Atomic Energy Commission
The Chairman
Federal Bureau of Investigation
The Director
National Security Agency
The Director
National Indications Center
The Director
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