Document Type: 
Document Number (FOIA) /ESDN (CREST): 
Release Decision: 
Original Classification: 
Document Page Count: 
Document Creation Date: 
January 27, 2020
Document Release Date: 
January 30, 2020
Sequence Number: 
Case Number: 
Publication Date: 
October 7, 1958
PDF icon CENTRAL INTELLIGENCE BULL[15777407].pdf686.31 KB
Ar/ Z/Z/Z/ZZZZZZ////, Z,ZZ/ZZZ/rf Approved for Release. 2020/91/23 C03003300 vr bttiKET vitir 3.5(c) 3.3(h)(2) 7 October 1958 Copy No. C CENTRAL INTELLIGENCE BULLETIN DOCUMENT NO. NO CHANGE CHANGE IN CLASS..7--- I I DECLASSIFIED CLASG. CANjCED TO: 13it S C NEXT 1�,;;I7Vii',:',V DA FE: � 4,0/ 6 AUTH 13 -I DATE. _REVIEWER: TOP SECRET ZA pproved for Release: 2020/01/23 C03003306f,/,,ZZ,ZWZM Approved for Release: 2020/01/23 C03003300 _ _ _ _ FflRFT Approved for Release: 2020/01/23 C03003300 owe". rt- evirt" rt. ref"-, Approved for Release: 2020/01/23 C03003300 7 OCTOBER 1958 I. THE COMMUNIST BLOC Taiwan Strait - No Communist ar- tillery fire against Chinmens since 5 October. IL ASIA-AFRICA Algerian agents to_nurcha nae_),(n�e_ armsii Prague. Iraq - Military mission sched- uled for Moscow. Baathist cab- inet member intends to resign as oressure on Prime Minister Qasim. Syria - Action against American- owned oil company probably intended as pressure on Tapline. 0 Iran - Reported conspiracy aims to limit powers of Shah. 0 Tunisian-Egyolan rplatinns con- tinue difficult. III. THE WEST a West Germany moves toward rela- tions with East European satellites. �r�����rik re reel n reri Approved for Release: 2020/01/23 C03003300 Approved for Release: 2020/01/23 C03003300 TOPSECRET t11/110 LI vrk p�O CENTRAL INTELLIGENCE BULLETIN 7 October 1958 DAILY BRIEF I. THE COMMUNIST BLOC *Taiwan Strait situation: There has been no Chinese Com- munist artillery fire against the Chinmens since about mid- nigh 5 October (Taiwan time). Peiping issued its "23rd ous warning" against the "intrusion" of US air and naval rces on 6 October, but did not threaten to resume shelling. Nationalist officials are making every effort to offset the ef- fects of Peiping's cease-fire offer. (Page 1) II. ASIA-AFRICA Algeria-Czechoslovakia: Czech authorities were expect- ing agents to arrive in Prague shortly "to purchase arms for Algeria," the agents as the Same as those who negotiated a $1,000,000 arms purchase with the Czechs in March 1957. (TOP SECRET EIDER) (Page 2) Iraq: An Iraqi military mission headed by the commander of the air force and the assistant chief of staff was scheduled to leave Damascus for Moscow on 4 October, Baathist Minister of State Fu.ad Ftikabi, recently replaced as minister of development, intends to resign in order to cre- ate difficulties for Prime Minister Qasim, which he hopes will force Qasim to choose between the Socialist Baath and the local Communists. (Page 3) TOP SECRET W7i 'Approved for Release: 2020/01/23 C03003300 LI Approved for Release: 2020/01/23 C03003300 TOP SECRET 110 Noe fin Arb Syria: The operations of the independent Menhail group, the only American-owned oil exploration company in Syria, were suspended on 5 October and its funds frozen by the gov- ernment. The action against this company is probably in- tended to bring pressure on the American-owned Tapline com- pany, which has been resented with UAR demands for in- creased payments. Page 4) Iran: Reports of a conspiracy to reduce greatly the pow- ers OF the Shah and make major changes in government per- sonnel continue to emanate from Tehran. Dr. Mozalar Baqai, unscrupulous leader of the relatively minor Toilers' party and former supporter of ex-Premier Mossadeq, is apparently involved in such a plan. Any such move to be successful would probably have to be supported, by a military move to oust the present government. Dissatisfaction of military circles with the present regime has frequently been reported. (Page 5) Tunisia-UAR: Although Tunisia has joined the Arab League, basically Tunis-Cairo relations continue to be dif- ficult. Tunisian President Bourguiba on 29 September ordered his ambassador in Cairo to return to Tunis immediately. This move is an apparent effort to get Nasir to withdraw his protec- tion from Bourguiba's exiled political rival, Salah ben Youssef, who is accused of plotting to overthrow Bourguiba. (page 6) I I L .THE WEST West Germany - Eastern Europez: Chancellor Adenauer In a 3 October press interview indicated that Bonn no longer considered recognition of East Germany by European satel- --lites an obstacle to their establishing relations with Bonn. V Recognition of East Germany by states independent of Mos- cow's control; however; would still be considered an "unfriendly 7 Oct 58 DAILY BRIEF ii N TOP SECRET T-x\ ;okpproved for Release: 2020/01/23 C03003300 N Approved for Release: 2020/01/23 C03003300' %WI act" by Bonn. Adenauer suggested that trade missions with consular rights might be the first step toward full diplomatic relations with the European satellites. (Page 8) 7 Oct 58 DAILY BRIEF iii TOP SECRET lApproved for Release: 2020/01/23 C03003300 Approved for Release: 2020/01/23 C03003300 41111k TAIWAN STRAIT TALLY SHEET (From JCS Situation Report No, 84) Air Situation (Losses claimed through 3 Oct) Destroyed Probably Destroyed Today Cumulative Today Cumulative Communist planes 0 28 0 4 Nationalist planes 1 5* 0 0 *Includes 2 C-46's, 2 F-84G's, and 1 F-86 Chinmen Supply Situation - (Tonnage through 5 Oct) Sea Air Total Delivery - 1-5 Oct 450 1,155 1,605 Totals (since 7 Sept) 5, 005 Average Daily Rate 172 Minimum Austere Daily Requirements 320 Cumulative Deficiency Since 7 Sept 4,275 Approved for Release: 2020/01/23 C03003300 Approved for Release: 2020/01/23 C03003300 *se I. THE COMMUNIST BLOC Taiwan Strait Situation Chinese Nationalist officials are making every effort to offset the effects of Communist China's cease-fire offer. One ranking Nationalist leader told an American official on 6 Octo- ber that his government views the move as a threefold attempt to divide Taipei and Washington, to weaken the morale of the troops on Chinmen, and to provide a means to charge the United States with forcing hostilities, possibly as a prelude to a major assault. Chiang Kai-shek told British newsmen on 6 October that the Warsaw talks should be broken off to test Peiping's reaction. A Nationalist military spokesman publicly dismissed the Com- munist offer to suspend shelling for a week as "purely interna- tional propaganda." There has been no Chinese Communist artillery fire since about midnight 5 October (Taiwan time). Peiping, however, issued its "23rd serious warning" on 6 October against the "in- trusion" of US air and naval forces, claiming that the "so- called escort" is not to help Nationalist forces, but "to create tension and extend aggression." Peiping stated that the Amer- ican actions occurred despite Defense Minister Peng Te-huai's offer to permit shipment of supplies to Chinmen on condition that there be no American escort, but the statement did not threaten to resume shelling. SECRET 7 Oct 58 0^ClkITC1 A I 11.1TC1 I li"Ekle`r flu Irvik Approved for Release: 2020/01/23 C03003300 Page 1 � Approved for Release: 2020/01/23 C03003300 ur II. ASIA-AFRICA Algerian Rebels Reported Again Seeking Czech Arms The rebel Algerian National Liberation Front (FLN), which continues to receive most of its external arms sup- port from the UAR, may be about to conclude a new direct arms purchase from Czechoslovakia. the UAR air attache in Prague notified by Czech author- ities that "a group from Austria and Hamburg" would arrive in Prague "in a few days to purchase arms for Algeria." Czech query as to the compe- tence of the group to make such purchases� appeared to equate it with a North African mission which, under Egyptian aus- pices, concluded a deal in Prague in March 1957 for $1,000,000 worth of unmarked small arms. These weapons were eventually confiscated by Spain when an attempt was made to bring them into northern Morocco. There is no indication as to the possible magnitude of any purchase which might materialize from this latest contact. FLN leaders have insisted hat their policy was to accept only "token" offerings rom the bloc as long as arms are available through Arab sources. For its part, the bloc has generally appeared to re- ciprocate this cautious approach as far as its actual material support of the Algerian rebellion is concerned, a high-level Czech official who visited Damascus was to discuss with the Syrians a $25,000,000 contract for arms for the Algerian rebels, but there is no firm evidence that such a deal was ever concluded. The rebels may, however, now be receiving some modern Czech small arms originally made available to Cairo. TOP SECRET 7 Oct 58 rPMTD A I IkITCI I in=kur= RI II I CTIkl Approved for Release: 2020/01/23 C03003300 Page 2 Approved for Release: 2020/01/23 C03003300 IU1MLfiii 4111, Iraq Situati6n The UAR military attach�n Baghdad has been officially informed by the Iraqi authorities that a "top-secret," four-man military mission was to be sent to Moscow from Damascus on 4 October, Included in the mission were the chief of the air force, the assistant chief of staff, and the director of plans. This group presumably will discuss Iraqi requirements for arms, especially air- craft. In the domestic political situation, former Deputy Premier Arif is said to be in a quandary regarding his future course of action. His Egyptian advisers believe that unless Arif refuses to accept the ambassadorship to West Germany and stays in Iraq, his influence ntrill be finished completely." Fuad Rikabi, Baathist Socialist ex-minister of development who recently was shunted into the post of minister of state, is planning to resign in order to precipitate a cabinet crisis and force -Premier Qasim to choose between the Baathists and the Communists for support. na group of senior army officers is really governing Iraq in a manner similar to that applied in Egypt from 1952 to 1954. The Egyptians are working assiduously to further the interests of the pro-UAR faction and during the past week sent $50,00- to their military attach�n Baghdad, presumably to buy support. Premier Qasim, while professing political, military, and economic solidarity with the UAR, has given the faction which favors union with the UAR another setback by stating that union could come only after a plebiscite, to be held at some future time "when the health, cultural. and social standards of the people are raised." TOP SECRET 7 Oct 58 CFKITDAI !KIM I incider RI III CTIkl Approved for Release: 2020/01/23 C03003300 Page 3 Approved for Release: 2020/01/23 C03003300 Syria May Freeze Out American Oil Interests The Syrian region of the UAR has issued a decree., effective 5 October suspending all operations of the Ameri- can-owned Menhall Prospecting and Exploration Company and providing for the liquidation or freeing of funds held by the company's Syrian branch. This move, which prob- ably presages the forcing out of the American firm, suggests that Egyptian oil policy now has been extended to the Syrian region. The UAR may soon oust the West German. - owned Societe des Petroles Concordia, which is the only other Western oil interest in the country. The Menhall interests control Syria's only proved oil field, located near the northwest border of Iraq. While the field has not yet been fully defined, its reserves are thought to exceed 1,000,000 barrels; its geology is similar to Iraq's. In ousting Western oil interests, Syria would not have to resort to nationalization since, under Syrian law, neither the Americans nor the Germans have permits to exploit oil discoveries. Menhall's efforts to "Arabize" the firm, while apparently having some in- fluence on Damascus, failed to sway officials in Cairo. UAR officials probably will use their action in the Menhall concession to impress on officials of the American- owned Tapline, which carries Saudi oil to the Mediterranean, that they intend to press their demands for a substantial in.. crease in revenues. The latest UAR demand, however, has been characterized as "impossible" by company officials since it would mean operating Tapline at a substantial loss. SECRET 7 Oct 58 CPKITDAI !MTN I InFKICF RIILLETIN Approved for Release: 2020/01/23 C03003300 Page 4 Approved for Release: 2020/01/23 C03003300 CU( ' vie Conspiracies Against Shah Continue in Iran Some Iranian political leaders are plotting against the Shah with the aim of greatly reducing his power and making extensive changes in the government. Discontent and plot- tingare also reporte4 among military officers. Augmented efforts to lessen discontent-have failed to be either exten- sive enough or dramatic enough to bolster the regime. Dr. Mozafar Baqai, leader of the minor Toilers' party and a former supporter of nationalist leader ex-Premier Mossadeq, is involved in a plot, apparently rather well ad- vanced, to force the Slab into a more limited role. He is selecting a shadow government with himself as prime minis- ter and retired General Ismail Shafai as minister of war, and may be ready to move fairly soon. Baqai claims he would immediately release from prison the popular General Valiollah Gharani, arrested in March for similar plotting. This would be an obvious effort to attract popular and military support. While Baqai apparently does not favor the use of force, military men associated with him believe he could be convince4if force is necessary to oust the Shah. Since the overthrow of the Iraqi Government in July, Irani- an popular discontent and criticism have come to the surface, and a reform movement with any prospect of success could prob- u widespread popular and military support. 7 Oct 58 CENTRAL INTELLIGENCE BULLETIN Page 5 Approved for Release: 2020/01/23 C03003300 Approved for Release: 2020/01/23 C03003300 INO Tunisian President Summons.Ambagsador From Cairo President Habib Bourguiba is determined that Tunisia's membership in the Arab League shall strengthen his position in his chronically difficult relations with Nasir. On 29 September Bourguiba instructed Tunisian Ambassador Taieb Sahbani in Cairo to submit Tunisia's formal application for league membership--on which Bourguiba had been stalling-- and CO infcirth both the Egyptian Government and the ''ecretary general of the league that he was ordered to return to Tunis until "the outstanding problem" between Tunisia and the United Arab Republic has been solved. Bourguiba claimed last July that he had warned the UAR ambassador to Tunis that Sahbani would be withdrawn if the UAR continued to harbor Salah ben Youssef, Bourguiba's political rival, whom Bourguiba suspects of plotting to overthrow him. Egyptian authorities were agreeable to the expulsion of Ben Youssef but did not want to create the im- pres�siorithat Tunis was dictating his departure as a condition for joining the league. Learning that Tunis had indeed made this condition, Ben Youssef postponed his departure in an attempt to dplay Tunisia's joining the league and thus to maintain Egyptian-Tunisian tension. the Arab states would be offended if Tunisia conditioned its membership application on the actual departure of Ben Youssef. Possibly influenced by this report, Bourguiba conceived his "formula" of recalling Sahbani, which he claimed was "already having some results." He claimed that the UAR foreign minister and the Arab League secretary gen- eral, would soon visit Tunis, presumably to discuss the recall of Sahbani and the consequent absence of a Tunisian representative during the current meeting of the league's council. TOP SECRET 7 Oct 58 f"CkITD A I IkITCI I in=kurr RI II I FTIK1 Approved for Release: 2020/01/23 C03003300 Page 6 Approved for Release: 2020/01/23 C03003300 101' SLC1