CENTRAL INTELLIGENCE BULLETIN - 1958/01/18

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03015197
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 19
• Document Creation Date: January 27, 2020
• Document Release Date: January 30, 2020
• Publication Date: January 18, 1958

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18 January 1958
copy No. 137
CENTRAL
TELLIGENCE
BULLETIN
DOCUMENT NO,
NO CHANGE IN CLASS.
; PE-CLASSIFIED
eLAss. CHANGED TO: T
NEXT REVIEW DATE:
AUTH: HR 7 -2
DATE.
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CENTRAL INTELLIGENCE BULLETIN
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18 January 1958
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DAILY BRIEF
I. THE COMMUNIST BLOC
Tito is renewing his efforts to influence developments
within the Eastern European satellites through closer party
relations. He is counting particularly on expanding existing
relations with Poland and Rumania. Although Belgrade is
extremely skeptical of Hungarian advances, it will continue
to encourage them. (Page 1)
The Soviet deputy commander in Berlin has notified
Allied officials that effective 31 January travel documents
of all passengers on Allied military trains to and from Ber-
lin must be stamped by Soviet officials at the checkpoints
or the trains will be turned back. Acceptance of such con-
trol would in effect allow the Russians to determine who may
ride on military trains and would encourage the Russians to
attempt further restrictions on Allied access to Berlin.
_
(Page 2) (MAP)
have indicated willingness to ac-
\\I
The Poles
cept "the most
rigorous
possible inspection" procedures
under the Rapacki plan for a "nuclear-free zone" in Europe.
They do not expect the plan to be accepted by the West but
may spell out their ideas on control measures in order to keepthe'vlan alive and stimulate further discussion on eas-
ing East-West tensions. (Page 3)
(MAP)
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'*\ I Indonesia's economic problems are becoming acute. N
-.., The finance minister has emphasized the drain that th
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present situation is placing on the country's foreign ex-
change and has forecast the development of a desperate
situation within the next two months. Serious dislocations
are cidyclloi_ang in various sections of the country, and are
likely to get worse in view of the government's difficulties
so far in siibtaining iritoxiStan-J. shirlAng,. Premier Djuanda,
however. is still optimistic that these problems can be
solved. (Page 4)
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18 Jan 58 DAILY BRIEF
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The Indonesian Army is phasing all Javanese units
out of South Celebes in East Indonesia, which will prob-
ably weaken the central government's authority in this
area. The action was taken to end friction between..these
troops and the local populace, particularly around Makassar,
Replacements for the Javanese are likely to be local per-
sonnel unsympathetic to Djakarta.
(Page 5) (MAP)
Internal security continues to be a serious problem
for theI-ebanese Government. Bombings are frequent,
and are probably encouraged by Syrian and Egyptian agents.
There are rumors in Lebanon that Premier Sarni Sulh may
be planning to resign.
A number of Turkish Army general officers have been
implicated in a plot to overthrow the Menderes government,
which has announced the arrest of nine officers, none rank-
ing higher than colonel. If the government court-martials
high-ranking military figures on these charges, this action
could lead to serious repercussions throughout the armed
forces. (Page 6)
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Tunisian-French relations continue in a precarious
state. The four French prisoners are still held-
somewhere in Algeria--and the
rebels have shown a willingness to discuss the problem
of their disposition with the International Red Cross.
President Bourguiba Has refused to receive one of the
French emissaries, who have now returned to Paris ac-
companied by French Ambassador Gorse.
The Laotian Army's occupation of the two Commu-
nist provinces in the north will probably begin on 19 Jan-
uary as scheduled. Serious opposition is not expected
as the Pathets have decided to emphasize political action
while continuing subversive activities.
they are assigning their best cadfes for polit-
ical work and are developing a left-wing popular front
(See facing MAP)
III. THE WEST
With the return of Parliament on 21 January, the
Macmillan government faces dissension among its sup-
porters growing out of the Thorneycroft resignation.
The government is recalling Conservative MP's from
abroad in an effort to obtain as large a majority as pos-
sible. The government faces popular dissatisfaction
with its economic policies and mounting demands for
some move toward an understanding with the USSR.
(Page 7)
Plans for joint French-Spanish military action in
early February against an estimated 3,000 Moroccan
Army of Liberation elements in the Spanish Sahara area
call for the employment Of two French forces from adja-
cent points in Algeria and Mauritania and of a Spanish
force now in Seguia al Hamra. Joint military action by
the two powers in this area will complicate their relations
with Morocco and is likely to have repercussions through-
out the Asian-African world. (See MAP on
reverse page)
18 Jan 58
DAILY BRIEF iii
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18 IANLIARY 1958
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PLANNED FRENCH-SPANISH
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The continuing instability of the Venezuelan regime is
reflected in further arrests or deportations of former top-
level military commanders and in rumors of additional cab-
inet changes as President Perez moves to consolidate his
position. Students demonstrated for the fourth consealtiire
day on 16 January in an effort to rouse civilian sentiment
against the government.
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18 Jan 58
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I. THE COMMUNIST BLOC
Tito Again Attempting to Influence Satellites
Tito is renewing his efforts to influence developments
within the Eastern European satellites through closer party
relations
He is counting particularly on expanding exist-
relations with Poland and Rumania.
although Belgrade is extremely skeptical of recent Hun-
garian approaches, it will continue to encourage them.
Aware that his past crusading in the satellites was of-
fensive to Moscow, Tito probably does not contemplate any
accompanying campaign in the press and other propaganda
media. Belgrade is dissatisfied, with
the trend of events in the bloc, but foresees no increased
tensions between Moscow and Belgrade. Both Belgrade and
Moscow are trying to avoid any public discussion of their dis-
agreements.
18 Jan 58 CENTRAL INTELLIGENCE BULLETIN Page 1
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WEST GERMANY- BERLIN
COMMUNICATION ROUTES
West German Autobahn ---- Highway East German
checkpoints: Railroad checkpoints:
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Russians Increase _Harassment of Allied Rail
Access to Berlin
The Soviet deputy commander in Berlin has told Allied
officials that effective 31 January the Allies must comply
with new documentation procedures for military trains or
have their trains turned back at the East German border.
The new control procedures require Soviet stamping of in-
dividual travel documents of train passengers. The prac-
tice of the past 12 years has been merely to show the Rus-
sian control officers a list of passengers. A precedent
exists for the new procedure, however, since individual
travel documents of autobahn travelers and crew members
of military freight trains are already subject to Soviet
stamping.
In addition, the latest Soviet requirements also would
prevent the issuance of extended travel orders for more
than one round trip to Berlin, and would compel all travel-
ers to use the same means of transportation for both parts
of the trip.
Submission to the new procedures would in effect allow
the Russians to determine who may ride on military trains,
and would encourage them to take additional-steps aimed at
restricting Allied access to the city.
-CONFIDENThtt
LLI
18 Jan 58
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COUNTRIES INCLUDED
IN RAPACKI PLAN
18 JANUARY 1958
UNCLASSIFIED
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Poland Continues to Push Rapacki Plan
The Polish ambassador to the United States has
stated that Poland would be willing to accept
most rigorous possible inspection procedures" under the
Rapacki plan for a nuclear-free zone in central Europe,
fully recognizing that many atomic weapons are quite small
and easily concealed. The Polish Foreign Ministry has thus
far refused to discuss control details but,
plans to elaborate further on con-
trol measures in order to keep the plan alive. The Poles
have also explained that it does not necessarily entail West
German dealings with East Germany.
Foreign Minister Rapacki has stated that with-
drawal of all troops from Europe and the concept of a neutral-
ized, reunified Germany are utopian ideas and has indicated
that he did not expect his own plan to be acceptable to the
West. The Polish ambassador in Washington indicated that
Poland advanced the plan to prevent West Germany from
gaining nuclear arms. The Poles also probably hope to gain
prestige by :authoring _a first step to broader disarmament
schemes, and to avoid Soviet demands for basing nuclear
weapons in Poland.
-SEGRET--
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IL ASIA-AFRICA
Indonesian Economic Situation Worsening
Indonesia's economic problems are becoming increas-
ingly acute. The finance minister, in persuading the cabi-
net recently to outlaw barter trading by the outer islands,
is said to have claimed on 8 January that unless Djakarta
takes drastic action to regain control of foreign exchange
earnings, "the country can continue to function only six
weeks to two months longer." Prime Minister Djuanda�
who remains optimistic, opposed the action against barter
trading but was overruled.
Serious dislocations are developing in various sections
of the country and are likely to become worse if the govern-
ment cannot soon restore the interisland shipping pattern dis-
ru ted b its anti-Dutch campaign.
describes Indonesia's general economic prop-
ems as "fantastic," states that in Surabaya�the second
largest port and city�the continuing decline in commodity
traffic is resulting in severe unemployment. Djakarta has
also been seriously affected by unemployment, and other areas
are experiencing shortages of food and supplies which could in-
crease unrest.
Government efforts to obtain additional ships by charter
from Japan have hit a snag. An early January Djakarta
the government
feels it needs a minimum of 26 ships totaling 70,000 tons, and
that it hoped that "other countries" might supply ships not
available from Japan. Indonesia now is reported to be con-
sidering offers from both Western and bloc sources, including
the Soviet Union and Poland.
TOP SECRET
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Further Isolation of Celebes from Indonesian
Government Probable
The Indonesian Government has decided to withdraw
Javanese troops from South Celebes in East Indonesia by
the end of March, in the hope of preserving the central
government's political authority in the area and ending
long-standing dissidence by eliminating friction between
the Javanese and locally recruited battalions. The nine
Javanese battalions will be replaced by locally recruited
troops under the command of Major Jusuf, indigenous
regimental commander.
The long-term effect of the government's decision is
likely to be a considerable loosening of the bonds between
Djakarta and the area. Autonomous sentiment in the area
is strong, and the Javanese units had kept it partially in
check. Although the Javanese withdrawal may result in at
least the temporary cessation of guerrilla warfare, it will
probably also lead to the greatly increased influence of
Kahar Muzakkar, who has engaged in armed dissidence
against the government since 1951. Major Jusuf and his
troops, former guerrillas who surrendered to the govern-
ment and chose army service, have a non-shooting agree-
ment with Muzakkar.
In North Celebes, effective contact with the central
government is expected to cease. Djakarta has refused
to recognize that area's recent announcement of autonomous
provincial status. Heretofore, the entire island of Celebes
has nominally been a single province administered from
Makassar in the southern part of the island.
--SEGRE--T--
18 Jan 58
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Turkey Announces Exposure of Coup Plot
There may be serious repercussions from the Turkish
Army if the high-ranking officers accused by the govern-
ment of involvement in plans for a coup d'etat against the
regime of Prime Minister Menderes are court-martialed
on trumped-up charges. The government says the coup
plans, which allegedly called for the arrest of top govern-
ment officials and the establishment of a temporary dic-
tatorship to be headed by Ismet Inonu, leader of the major
opposition Republican People's Party (RPP), have been
foiled. Inonu himself has not as yet been implicated in
the alleged conspiracy.
At least six army generals have been impliOated
in the plot, -,althbughl the government's official communique
claimed that only nine officers, none higher than the rank
of colonel, had been arrested. Air force officers, as well
as army officers, may have been plotting against the gov-
ernment. The investigation, which continues, is being
handled by the military, and those charged will be court-
martialed.
Transfer of 16 "rather important" army officers on 8
January from western Turkey suggests that the coup threat
was much broader than admitted by government spokesmen.
There could also be a serious reaction throughout
Turkey if the government tries to use the coup charges
as justification for banning the RPP, which has wide-
spread support.
SECRET
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III. THE WEST
Weakened Macmillan Government Faces Severe
Parliamentary Attack
With the return of Parliament on 21 January, the
Macmillan government faces serious dissension among
its supporters as a result of Chancellor of the Exchequer
Thorneycroft's resignation on 7 January. The American
Embassy sees the resignation as the most severe blow
yet to the political stability of the government and believes
that it could irreparably damage Prime Minister Macmillan's
parliamentary reputation as a "deft, politically courageous
politician."
Important elements in the Conservative party have in-
dicated their approval of Thorneycroft's charge that the
real issue was cabinet support for his anti-inflationary pol-
icy. Conservatives generally have considered this policy
the key factor in the party's chances of winning the next gen-
eral election. They maintain that their poor showing last
year in by-elections was due mainly to the voters' doubts
that the government could control inflation.
The government's first test will come on 23 January with
the Labor opposition's motion of no confidence on economic
issues. Fear of extensive abstentions by Thorneycroft sym-
pathizers has led the government to recall Conservative MP's
from abroad in an effort to obtain as large a part of its normal
40-vote majority as possible.
In the face of continuing dissatisfaction with its economic
policies and under a hard-hitting Labor offensive, the govern-
ment may seek to bolster its prestige by heeding the public
demand for moves toward some agreement with the USSR.
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DISTRIBUTION
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 Mobilization
Operations Coordinating Board
Board of Consultants on Foreign Intelligence Activities
Special Assistant for Foreign Economic Policy
The Treasury Department
The Secretary of the Treasury
The Department of State
The Secretary of State
The Under-Secretary of State
The Counselor
The Deputy Under-Secretary for Political Affairs
The Deputy Under-Secretary for Economic Affairs
The Deputy Under-Secretary for Administration
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, 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
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 Director
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