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Document Creation Date: 
January 27, 2020
Document Release Date: 
January 30, 2020
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September 24, 1958
"Approved for Release: TOP 720/01/23 CO2996: KLI 3.3(h)(2) 24 September 1958 Copy No. C CENTRAL IVFELLIGENCE BULLETIN DOCUMENT NO. _. NO CHANGE IN OLAF'S. DECLA0 CThAf.v.:3 CHANGEO TO. zk's DATE. Gen: tr,:j7I1 0 TOP SECRET for Relesj: 2020701/13Aoeig9g6347 /1/A finPEWER: Approved for Release: 2020/01/23 CO2996634 �TOP�SECREr 0.4 -TOP-SEC-RET- Approved for Release: 2020/01/23 CO2996634 Approved for Release: 20201/01/23 CO2996634 %woo 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 TOP SECRET Approved for Release: 2020/01/23 CO2996634 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. Approved for Release: 2020/01/23 CO2996634 , _ _ _ %Me *ale 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. TOP SECRET AApproved for Release: 2020/01/23C/02-996/6-3-4 ��,�, "Approved for Release: 2020/01/23 CO2996634 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 A Approved for Release: 2020/01/23 CO2996634 Tungan Chimei Kaochi 0 ? KcChi AMOY Am� LIEH HSU idle Quemoy KU LANG H NAM' MARIOR C&TA TA N � EHRTAN si?WUHSU KINME oHuhsia (Quemoy 0 Shuitou y BAY cfiTuNGTING Airstrip Liaolo 0 0 Shihshih THE KINMEN AREA 5 0 5 10 NAUTICAL MILES 5 0 1-4 STATUTE MI LES 10 1 60103 A 80903 Approved for Release: 2020/01/23 CO2996634 Approved for Release: 2020/01/23 CO2996634 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 TOP SECRET 24 Sept 58 CENTRAL INTELLIGENCE BULLETIN Page 1 Approved for Release: 2020/01/23 CO2996634 Approved for Release: 2020/01/23 CO2996634 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. TOP SECRET 24 Sept 58 rFNTRAL INTELLIGENCE BULLETIN Page 2 Approved for Release: 2020/01/23 CO2996634 Approved for Release: 2020/01/23 CO2996634 Nimid %110 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. 24 Sept 58 CENTRAL INTELLIGENCE BULLETIN Page 3 Approved for Release: 2020/01/23 CO2996634 Approved for Release: 2020/01/23 CO2996634 tear, %10, 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 SECRET- 24 Sept 58 CENTRAL INTELLInFNCF RIll I PTIKI Page 4 Approved for Release: 2020/01/23 CO2996634 Approved for Release: 2020/01/23 CO2996634 NO. � a a.a, � a a a a ._. %so 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. 24 Sept 58 rFKITPAI IKITFI I ICIFNCE BULLETIN Page 5 Approved for Release: 2020/01/23 CO2996634 Approved for Release: 2020/01/23 CO2996634 a 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. SECRET 24 Sept 58 e'ekITI5 A I IkITCI I inictorp RI II I FTIN Page 6 Approved for Release: 2020/01/23 CO2996634 Approved for Release: 2020101123CO2996634 %of �10 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 Approved for Release: 2020/01/23 CO2996634