CENTRAL INTELLIGENCE BULLETIN - 1958/09/24

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02996634
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 13
• Document Creation Date: January 27, 2020
• Document Release Date: January 30, 2020
• Publication Date: September 24, 1958

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24 September 1958
Copy No. C
CENTRAL
IVFELLIGENCE
BULLETIN
DOCUMENT NO. _.
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24 SEPTEMBER 1958
I. THE COMMUNIST BLOC
Taiwan Strait - Chiang Kai-shek wants
convoy problem solved in two weeks. 0
GMIC statement on Tyura Tam launch-
ing: see Brief, page i,
IL ASIA-AFRICA
UAR - Serious differences reported be-
tween Nasir and key regime figures in
Cairo, 0
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Lebanon - Christian-Moslem tension
continues to rise.
Soviet aid delegation expected in Nepal;
India opposes acceptance.
0 Cyprus - Greece publicly abandoning
Greece-Cyprus union; will propose in-
dependence under UN.
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CENTRAL INTELLIGENCE BULLETIN
24 September 1958
DAILY BRIEF
I. THE COMMUNIST BLOC
Taiwan Strait situation: President Chiang Kai-shek on
23 September stressed to Ambassador Drumright the need
for a satisfactory solution of the convoy problem in the next
two weeks; the Nationalists had set shorter deadlines pre-
viously. Chiang, however, continues to insist that he will
retaliate against any Communist air attack on Kinmen or an
amphibious assault on the lesser offshore islands.
(Page 1) (Map)
USSR Tyura Tam launching: The Guided Missile Intelli-
gence Committee at 0800 EDT 0n23 September reported:
"The USSR launched a probable space vehicle at 0303 EDT
on 23 September 1958.
UP
II. ASIA-AFRICA
IJAR: There are insistent reports and rumors in Cairo
of serious differences between Nasir and key figures in his
regime. Abd-al-Latif Baghdadi, Egyptian vice president for
economic affairs, who has been accused of profiteering, has
submitted his resignation, which Nasir has not yet accepted.
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A serious split within the regime is unlikely, but signs of
friction and corruption may diminish its prestige and add
to public discontent (Page 3)
Lebanon: Newly installed President Shihab faces an
increasing threat of Christian-Moslem violence and in
this atmosphere may find it difficult to select a :Premier
and cabinet acceptable to both sides. Accounts purporting
to give details of the murder of the kidnaped Phalange
editor will probably increase pressure for retaliation
against Moslem leaders. (I age 4)
Soviet aid to Nepal: A Soviet delegation apparently
Is scheduled to arrive in Nepal within a few weeks to
negotiate specific aid projects under a long-standing offer
of Soviet assistance. New Delhi is pressing Nepalese
authorities to adopt delaying tactics, and .Nehru is said
to have warned the King against acceptance.
(Page 5)
Greece-Cyprus: The Greek Government and Arch-
bishop Makarios are publicly abandoning their efforts to
join Cyprus to Greece in order to concentrate on opposing
the new British plan. Greece apparently intends to propose
to the United Nations General Assembly that Cyprus be made
independent under UN guarantee, with both partition and
union with Greece precluded. Prime Minister Karamanlis
has again warned of serious repercussions in Greece if
the British implement their plan.
(Page 6)
24 Sept 58
DAILY BRIEF ii
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iftio9
L THE COMMUNIST BLOC
Taiwan Strait Situation
Chiang Kai-shek, in a conversation with Ambassador
Drumright, Admiral Felt, and Admiral Smoot on 23 Septem-
ber, stressed the need to solve the convoy problem within
the next two weeks. Otherwise, he felt, the Kinmen supply
situation would deteriorate progressively. Chiang had told
Admiral Smoot on 12 September that drastic steps would have
to be taken if the resupply effort did not show marked im-
provement in five days.
Chiang also said that if Tatan and Erhtan Islands, which
he described as being in a perilous state, were attacked, the
Nationalists would employ all their resources to meet the at-
tack. Ambassador Drumright concluded from Chiang's full
remarks that Nationalist pressure to resort to general retali-
ation is for the moment somewhat abated.
Incomplete Nationalist records show that casualties on
Kinmen from 23 August to 21 September were 1,7571 including
338 killed.
There are unconfirmed indications that the Chinese Com-
munists have deployed better jet fighters, possibly the FARMER
(MIG-14 to the East China area. Two different groups were
observed by radar tracking on 22 September to be attaining
speeds in excess of 850 miles an hour. The maximum speed
of the FRESCO (MIG-17) fighters which are known to be based
in the strait area is about 645 miles per hour.
With the identification and confirmation of the Chinese
Communist 3rd Artillery Division as being in the Amoy area
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I 40
since late August, the total Communist ground force strength
in the Foochow Military Region opposite the offshore islands
is estimated to be 287,000. There are believed to be _other
artillery units in addition to the 3rd and 9th Artillery Divisions
in the Amoy area. The additional units are equivalent to about
a division of artillery.
a
Chinese Communist fighter made low altitude attacks on two
probable Nationalist transports engaged in the Kinmen air re-
supply operation on the evening of 22 September, downing one.
The attacks were ,made despite the known presence of Ameri-
can aircraft flying high cover for the 'operation. The incidents,
which contrasts with the caution usually displayed by the American are in the area
An editorial in the Peiping Kwang-ming Daily, a..leading
government newspaper, stated on 23 September that "Our
stand is: We will never attack unless attacked; if attacked, we
will certainly counterattack." The tone of the editorial, which
also declares that "the Chinese people have never intended to
fight with the US," appears to moderate slightly Peiping's earlier
threats against the US.
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II. ASIA-AFRICA
Nasir Facing New Difficulties
Nasir has received the resignation of Egyptian Vice Pres-
ident for Economic Affairs Abd al-Latif Baghdadi, but has not
as yet indicated that he will accept it. Baghdadi, a member of
the original Revolutionary Command Council and one of the re-
gime's most compbtent officials, has been accused of profiteer-
ing, following an official investigation presumably ordered by
Nasir. Acceptance of the popular Baghdadi's resignation, com-
bined with present rumors of a serious misunderstanding be-
tween Nasir and his chief adviser, Ali Sabri, would probably
lower the regime's prestige and add to public discontent. Egyp-
tian Marshal Amir is reported attempting to bring about a rec-
oreiliation.
Differences between Nasir and members of his revolution-
ary group have been common, but they have usually been set-
tled with a minimum of publicity and little effect on the regime's
stability. It is unlikely that the current difficulties will have a
significantly different result; however, they add to the mounting
number of problems Nasir is facing. Popular disapproval of
many of the regime's internal policies, particularly its suppres-
sion of organized labor, has given Nasir much concern. His
reported plan for centralizing the UAR government in Cairo is
probably a move to head off serious trouble in Syria by exercis-
ing more rigid control. He also faces a possible setback in
Iraq, where Egyptian efforts to rush the revolutionary govern-
ment into union with the UAR are meeting strong resistance.
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Lebanese Situation
The sharp reaction of Lebanese Christians to accounts
purporting to give details of the mutilation and murder of the
kidnaped pro-Chamoun Phalange editor has made it much more
difficult for newly installed President Shihab to form a cabinet
which will be acceptable to both sides, and also has greatly
Increased the threat of Moslem-Christian violence. Several
prospective contenders for the premiership are reported to
have informed Shihab that they would not accept the post,
presumably because of the increased possibility of internal
violence. However, rebel leader Rashid Karame, who is
said to be Shihab's choice, has made no move to withdraw his
candidature. Karame's chances of becoming prime minister
have diminished considerably, and Shihab may be forced to
form a military cabinet or rule by decree.
According to one report, rebel leaders in Beirut after
strong army pressure turned over to the authorities the
editor's badly mutilated body, and Lebanese security forces
arranged a quiet and speedy reburial. Leaders of the rebel
forces in Beirut's Basta district were also pressured into
delivering to the army two men alleged to have been the
murderers. Rebel Basta leader Saeb Salam has disclaimed
any connection with the murder and asserts that it was the
work of UAR agents. The Phalange has decided to continue
its general strike in Beirut and the Biqa Valley throughout
24 September, and the Maronite quarter of Beirut remains
barricaded.
Some consternation in rebel quarters has resulted from
rumors that Iraqi authorities have proof that certain leaders
received money from the Iraqi monarchical regime in the
past. Revelation of thth bribery could do heavy damage to the
rebel cause. Cairo radio despite Chamoun's retirement
from_public office, has continued its attacks on the ex- pres-
ident and has in effect invited his assa
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Soviet Aid to Nepal
The Nepalese Government will be under increasing
pressure during the next few weeks to decide on the extent
and form of economic assistance it will accept from the
USSR. A Soviet delegation is expected in Nepal shortly
to negotiate specific aid projects under Moscow's repeated
offers of assistance. The Indian Government continues to
press Katmandu to adopt delaying tactics and to limit the
scope of Soviet activity in Nepal.
The communiqu�ssued at the end of King Mahendra's
State visit to the USSR in June reiterated Moscow's "agree-
ment to help with economic aid," but final acceptance of the
offer by Nepal was deferred pending study by "appropriate
agencies." The Soviet delegation of technicians reportedly
will propose as major projects a hydroelectric plant" on
the Karnali River in western Nepal and an east-west road.
Moscow may also provide some monetary assistance, simi-
lar to the $4,200,000 cash grant supplied by Peiping in 1956
which the Nepalese authorities have used for budgetary sup-
port. Peiping also gave $8,400,000 in goods.
Prime Minister Nehru reportedly warned King Mahendra
last June, when the King was en route to Moscow, against
developing closer ties with the USSR, and particularly against
accepting any aid involving the presence of Soviet technicians.
The Indian Embassy in Katmandu has expressed interest to
US officials in the possibility of additional joint Indo-Ameri-
can aid designed to preclude anticipated Soviet projects. King
Mahendra told the American ambassador in June, however, that,
while aware of the implications of f33vet . aid, he must develop
his country and would not reject aid offered on terms he con-
sidered satisfactory. Mahendra is said to be impressed by the
way in which the Afghans ha' used both Soviet and American
aid in separate sectors of their country.
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Cyprus and Greece
Archbishop Makarios has called for self-government and
eventual independence for Cyprus in an apparent effort to
delay�or if possible prevent�implementation of the new
British plan for the island. The Greek Cypriot leader has
suggested in a published interview that a peacemaking
period of self-government under British rule should be
followed by full independence, guaranteed by the United Na-
tions. Makarios would abandon the demand for "enosis"--
union with Greece--but would preclude the partition desired
by Turkey.
The Greek Government is expected to follow Makarios'
initiative with a drive to line up support among UN members
for an independent Cyprus when the subject is discussed
during the present session of the General Assembly. Greece
can expect support in the UN from many Afro-Asian states
and from the Soviet bloc, and consequently will probably
concentrate its attention on Latin American and selected West-
ern European nations. Greece's abstention in the recent UN
General Assembly votes on the Indian resolution for Chinese
Communist representation in the UN was probably based on
hopes for strong Indian support in the forthcoming debate on
Cyprus.
In Greece, Premier Karamanlis is increasingly pessimis-
tic as the 1 October date for beginning implementation of the
British plan approaches. He repeatedly has warned that the
"humiliation" to which he has been subjected by his Western
allies will force either his resignation or Greek withdrawal
from NATO. Fear of causing political instability probably
will prevent him from resigning. The emotional reaction
in Greece to arrival of a Turkish representative on Cyprus,
however, combined with widespread violence on the island
and British attempts to suppress it, may force Karamanlis
to make some diplomatic move such as recalling ambas-
sadors from London and Ankara or withdrawina from �artic
Vation in. NATO activities.
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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
Special Assistant for Security Operations Coordination
Board of Consultants on Foreign Intelligence Activities
Special Assistant for Foreign Economic Policy
Special Adviser to the President
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
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 Defense for Special Operations
Deputy Director for Intelligence, The Joint Staff
Assistant Chief of Staff for Intelligence, Department of the Army
Director of Naval Intelligence, Department of the Navy
Assistant Chief of Staff, Intelligence, Department of the Air Force
Supreme Allied Commander, Europe
Commander in Chief, Pacific
The Department of the Interior
The Secretary of the Interior
Federal Bureau of Investigation
The Director
Atomic Energy Commission
The Chairman
National Security Agency
The Director
National Indications Center
The Director
United States Information Agency
The Dirctor
CONFIDENTIAL
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