CENTRAL INTELLIGENCE BULLETIN - 1959/01/22

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03023338
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 18
• Document Creation Date: February 25, 2020
• Document Release Date: February 27, 2020
• Publication Date: January 22, 1959

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22 January 1959
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CENTRAL
63
INTELLIGENCE
BULLETIN
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22 JANUARY 1959
I. THE COMMUNIST BLOC
Finns see signs USSR is easing pres-
sure which brought down Finnish Gov-
errn;ent in December.
Soviet submarines, minesweepers
aooarentiv headed for delivery to UAR.
II. ASIA-AFRICA
Cambodia - General Dap Chhuon plans
coup against Sihanouk regime in early
Februaxy.
Israeli naval maneuvers reassert
right to use Gulf of Aqaba.
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Iran seeks better relations with UAR
to offset Communist trend in Iraq.
Lebanon - Tensions between Christian
and Moslem communities continue in
Lebanon.
\
r
0 Libya may seek heavy weapons from
Nasir; anti-Western clique urges King
to visit Cairo.
III. THE WEST
Italy - Independent Socialist leader
predicts defection of followers to
Nenni, which could eliminate Fanfani's
parliamentary majority.
Portuguese regime worried over es-
cape of opposition leader.
-T-61P-SEGRE-T
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CENTRAL INTELLIGENCE BULLETIN
22 January 1959
DAILY BRIEF
I. THE COMMUNIST BLOC
USSR-Finland: The first sign of relaxation of the Soviet
pressures which last month toppled Finland's conservative
coalition government is the statement by the Soviet charge'
in Helsinki that the long-deferred trade negotiations can be
gin shortly. Official statements by the Finnish Communist
party, however, have severely criticized the new minority
Agrarian government formed last week. Meanwhile, Pres-
ident Kekkonen has left on a "private" visit to Leningra.....g
(Page 1)
Soviet naval movements in Mediterranean: Three Soviet
W-class submarines and a T-43-class minesweeper that left
the Baltic Sea on 7 January have moved into the eastern
Mediterranean. These ships may be scheduled for delivery
to the UAR but further routing of some of these units to Indo-
nesia is also possible. Two T-43- class minesweepers and a
Soviet naval supply ship that left the Black Sea on 17 January
have probably arrived at the Syrian port of Latakia. These
minesweepers are apparently being delivered under terms of
a Soviet-Syrian the forma-
Watch Committee conclusion--Taiwan Strait: The Chi-
nese Communists continue to have the capability of seizing
some of the smaller offshore islands in the Taiwan Strait area
with virtually no warning. A review of the evidence does not
reveal arLirttRnt_to_initiate_a the im ediatm e
future.
0P-SECR7
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IL ASIA-AFRICA
Cambodia: :General Dap Chhuon, commander in western
Cambodia, plans to mount a coup afrainst the reaime of Pre-
mier Sihanouk on 9 or 10 February
Chhuon apparently is count-
ing on the cooperation of several nigh-ranking military figures
The attitude of the army chief of staff, as yet unknown, would
determine whether a coup could be bloodless. The reported
dates coincide with Sihanouk's planned visit to Indonesia and
also with Chinese New Year celebrationg
(Page 2)
Watch Committee conclusion--Middle East and Southeast
Asia: Situations susceptible of direct exploitation by Smo-Soviet
hostile action which would jeopardize US interests exist in the
Middle East and Southeast Asia,
Middle East: Although the situation in the Middle East re-
mains precarious, a deliberate initiation of large-scale hostil-
ities is unlikely in the immediate future. Communist influence
and activity in Iraq continue to pose the threat of Communist
control of the government.
Southeast Asia: In Cambodia, Premier Sihanouk's aware-
ness of political plots against him, abetted by Thailand and
South Vietnam may impel him to seek increased Communist
support.
Israel - Aqaba Gulf: The "routine training exercises"
which Israeli motor torpedo boats began in the Gulf of Aqaba
on 20 January apparently are intended to reassert Israel's de-
termination to use the gulf. They may be timed to precede an
Arab League meeting on maritime law in Cairo on 24 January
which will seek to bolster Arab,claims to control of the entire
gull. Page 3) (Map)
Iran-UAR: The Iranian Government, alarmed at recent
Communist activities in neighboring Iraq and apparently con-
sidering major adjustments in its policy, appears to be
22 Jan 59
DAILY BRIEF
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IA
interested in 4nnroving relations with the UAR. Foreign Min-
ister Hekmat,
has stressed to the UAR ambassador in Tehran
his determination to strengthen relations through various
means, including an exchange of visits by high-ranking offi-
cials, Improved relations between Tehran and Cairo would
also be in line with the Shah's reported admiration for Nasir's
ability to exploit both East and West for economic and military
gain. (Page 4)
Lebanon: Clashes between Christian and Moslem students,
over a plan to offer in the Arabic language training in law which
has hitherto been available only in French at a Jesuit school,
are symptomatic of the continuing pressure of Lebanon's Mos-
lems for control of the state. Controversies between the Chris-
tians and Moslems in Lebanon will continue to create public
tension and dissension in the cabinet. (Page 5)
Libya: he Libyan defense minister's visit to Cairo late
this week may be for the purpose of requesting arms, including
tanks and armored cars. A UK official recently discouraged
Libyan request for heavy equipment. The influential clique op
posed to the pro-Western Crown Prince is reported to have per-
suaded King Idriss to visit Egypt beginning in May.
(Page 6)
III. THE WEST
Italy: ,Vice Premier Saragat predicts that several dep-
uties of his small Democratic Socialist party will split away
to join the Nenni Socialists as a result of Nenni's victory over
the pro-Communists at the recent party congress. Such a
move would wipe out Premier Fanfanits present three-vote
1� parliamentary margin. There is reason to believe, however,
that a government crisis may be postponed until after the April
congress of Fanfanies Christian Democratic party.
(Page 7)
22 Jan 59
DAILY BRIEF
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Portugal: Elie escape of ex-army Captain Henrique Galvao,
long-time Portuguese opposition leader, from a Lisbon hospital
on 15 January has aroused the concern of key members of the
Salazar regime, Galvao
whom Portuguese police officials regard as a real threat to th
government, could provide the leadership, heretofore lacking,
for the increased popular opposition to the regime and at the
same time obtain decisive backing from dissatisfied elements
among re line supporters to effect Salazar's retirement at an
early date. (Page 8)
22 Jan 59
DAILY BRIEF iv
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4.41.1
I. THE COMMUNIST BLOC
USSR Eases Pressure on Finland
[IVIoscow has begun to relax the pressures which toppled
Finland's "rightist" coalition government last month, but has
not yet indicated firm approval of the new minority Agrarian
government formed last week by V. J. Sukselainen without
Communist representationg
Soviet charge informed Finnish officials on 19 Jan-
uary that long-deferred trade negotiations can begin soon and
that the USSR would be prepared to receive a delegation "within
a matter of days." According to the Finnish press, suspended
Soviet payments to several Finnish industries have been re-
sumecA
[The USSR, at Finland's request, renewed an invitation ex-
tended last May for a "private visit" by President Kekkonen.
Soviet officials had ignored earlier attempts by the Fagerholm
government to arrange such a visit. The new Finnish Govern-
ment's desire to adopt a conciliatory posture toward the USSR
is reflected in its prompt reply to the Soviet proposal for a gon-
ference to draft a German peace treaty which stated that Fillland
is ready to "contribute" to the success of such a conferencp,3
ahe USSR still has not replaced its ambassador to Finland,
withdrawn last September, but Peiping, which followed the Soviet
action in October, has now requested approval for its new am-
bass ado
Official press statements by the Finnish Communist party
(FCP), however, have asserted that the Sukselainen government
is incapable of "restoring relations of trust with the USSR" and
have accused it of "preparing the way for a rightist return to
power." The Finnish Communists' attacks, quoted by TASS, sug-
gest that they will continue to agitate for inclusion in the govern-
men9
CONFIDENTIAL
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II. ASIA-AFRICA
Anti-Sihanouk Forces in Cambodia Ready for Early Coup
Effort
[Brigadier General Dap Chhoun, disaffected commander
of the Fourth Military Region in 'western Cambodia, plans to
mount a coup against the Sihanouk government on 9 or 10 Feb-
ruary, Chhoun, who
controls about 3,000 men in the field and claims the allegiance
of the palace guard battalion in Phnom Penh, is said to feel
that the time is ripe to make his move and provide strohg
� leadership to various elements dissatisfied with Sihanouk's
rule. The contemplated date for the coup coincides with the
Buddhist New Year festival period when security normally
is la]
Khhoun apparently is-banking on the support of several
high-ranking military officers to effect a swift and bloodless
coup. Army Chief of Staff Lon Nol, whose attitude in this
situation is uncertain, may prove a critical factor in the
success of these plans if they become known to him. He
probably would desert Sihanouk only if he felt assured that
Chhoun's forces would be victorious}
Lahances of a successful sudden grab for power, however,
may -1:;'e diminished by Sihanouk's alertness to an apparently
separate effort by South Vietnam and Thailand to unseat him.
Sihanouk is taking urgent steps to rally popular support by
airing charges of a Western-supported conspiracy aimed at
overthrowing Cambodia's monarchy in favor of a pro-SEATO
government. In a proclamation to the nation on 20 January,
Sihanouk revealed details of this "foreign plot" as well as
security measures being taken to contain the threat to .
Cambodia's independenc_g
22 Jan 59
CENTRAL INTELLIGENCE BULLETIN
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Tel Aviv
Gaza
GAZA STRIP
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AL QUSAYMAH
EGYPT
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UNCLASSIFIED
MILES 60
90121 3
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Niire Niue
Israel Begins Naval Exercises in Gulf of Aqaba
Israel's two torpedo boats at Eilat began "routine train-
ing exercises" in the Gulf of Aqaba on 20 January. The ex-
ercises probably were timed to precede an Arab League
maritime conference in Cairo on 24 January in order to em-
phasize Israeli determination to use the gulf despite Arab
objections.
Saudi Arabia and the United Arab Republic together claim
territorial rights over the entire gulf and the right to prohibit
Israel's use of it. These claims will be discussed at the Arab
League meeting, as will conventions prepared at the 1958
Geneva Conference on the Law of the Sea. The Geneva conven-
tion which endorses a three-mile width for territorial seas con-
flicts with the Arabs' claim to 12 miles.
The Arabs have thus far made no attempt to prevent transit
of the gulf by Israeli vessels. Jordanian Army units in the Aqaba
port area have maintained a passive attitude. Saudi infantry and
artillery units on the eastern shore of the gulf have been repeat-
edly instructed not to fire unless fired on, and most Saudi
forces late this fall were ordered to pull back from the gulf
coast to the base at Tebuk, Egyptian forces have not reoccu-
pied the, western side of the gulf since the hostilities in 1956,
and a small detachment of UN troops is stationed on the Egyp-
tian side of the entrance of the gulf.
The Egyptians have this year, however, built and occupied
a base at Hurghada on the west coast of the Red Sea opposite
the entrance to the Gulf of Aqaba. The base includes a modern
military airfield and facilities for sheltering small naval craft,
including motor torpedo boats.
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Iran Seeking Closer Relations With UAR
The UAR ambassador in Iran,
informed his government that Iranian Foreign Minis-
ter Hekmat is seeking to strengthen relations between Iran
and the UAR. Hekmat desires to
visit Cairo to deal directly with the UAR Government. Appar-
ently Hekmat feels that the signing of a cultural agreement
between Iran and the UAR in September 1958 and a recent ex-
change of correspondence have prepared the way for a more
intimate association with the UAR. Hekmat stated that there
is nothing wrong with the UAR's nationalist policy and that as
long as he is foreign minister, he will work diligently to
strengthen Iranian relations with the UAR.
Hekmat's approach to the UAR may indicate that the
Iranian Government, worded by the situation in Iraq, has
decided that, in the struggle between Nasir and Communist
forces for control of Iraq, Nasir is the lesser of two evils.
In addition, Hekmat's action may be another reflection of the
Shah's concern over his lack of success in obtaining new US
guarantees to defend Iran and support for the Baghdad Pact.
The Shah has indicated that he is considering a neutral role
for Iran and a 50-year nonaggression pact with the USSR. He
may believe that Iran's security will be further increased by
reaching an accommodation with Nasir.
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The Lebanese Situation
A student strike over the question of teaching law in the
Arabic language at the government-controlled Lebanese Acad-
emy has aroused religious antagonism and caused clashes be-
tween Moslem and Christian students. Up to the present time
the teaching of law in Lebanon has been confined to Universite
St. Joseph, a French-financed school sponsored by the Universitd
de Lyon, and instruction has been in French. The president of
the Arabic-language Lebanese Academy, sometimes referred to
as the Lebanese University, has no college degree, and its fac-
ulty and educational standards are far below those at St. Joseph.
Moslem students throughout Lebanon went on strike sev-
eral days ago in support of the Academy's efforts to add a law
curriculum. French-oriented secondary students struck in
retaliation. The dispute, now drawn along religious lines, has
reached into the cabinet, reportedly causing a rift between its
two Christian and two Moslem members. While this particular
dispute may be resolved, new controversies of this kind will
continue to spring up to disrupt the cabinet, which is not being
given effective leadership by President Shihaba
Recently there have been reports of threats by Communist
and extreme Arab nationalist elements to continue to foment
labor strife in Lebanon. These elements' efforts are primarily
directed against pro-Western unions in the fields of transporta-
tion, dock workers, public utilities, and the textile mills. The
textile workers and truck drivers now are on strike. Next on
the extremists' list are the workers of the tobacco monopoly.
With some unemployment and reduced economic activity as a
consequence of last summer's rebellion, the field is fertile for
extremist elements to incite labor troubles, and Communist trade
unionists, according to spokesmen for all democratic trade union
elements, are enjoying favor with Prime Minister Karami.
There have been reports that the Syrians again have been
smuggling arms to antigovernment forces in Lebanon.
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Libyan Developments
5uring the past few weeks, King Idriss and Prime Min-
ister Kubaar have been seeking to improve strained relations
with the United Arab Republic. Conscious of the steady in-
crease in pro-Nasir sentiment among junior army officers,
among provincial officials, and among the people generally,
government spokesmen have capitalized on a few words of
praise in Nasir's lengthy 27 November address to emphasize
the friendly relationship between Libya and "brother UAR."
Nasir warmly welcomed the new Libyan ambas-
sador, Khalil al-Qalal, to Cair23
Libyan De-
fense Minister Ibrahim ben Shaaban plans to visit the UAR
later this week and suggest, that he ig to :be taken on a
conducted tour of UAR military installations.
, he intends to ask for arms, including tanks
and armored cars, which the Libyan Government has unsuc-
cessfully sought from Britain. In October 1957, the Egyptian
Government presented King Idriss with a gift of six armored
cars for his bodyguard/
clique of 'influential. Libyan officals, headed by Royal
Chamberlain Busayri Shalhi and opposed to the pro-Western
crown prince continues to plot against the government. Shalhi
is to have persuaded the
Ki g to plan a long VIS1L tu zgypt, mstildng in May. Since the
present government is kept in power only by the personal loy-
alty of most key political, military, and tribal figures to the
69-year-old King, his absence might provide the opportunity
for a successful coujg
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III. THE WEST
Italian Government Continues in Jeopardy
Statements made by Vice Premier Saragat to US Embassy
officials on 20 January suggest that the victory won over the
pro-Communists by Pietro Nenni's autonomist faction at the
Italian Socialist party's (PSI) congress may lead to a cabinet
crisis. Saragat, leader of the Democratic Socialists, who
are part of the government coalition, predicted that two to six
of his party's 22 deputies will split away to join Nenni. This
would erase the government's three-vote margin and could
topple Prime Minister Fanfani unless he can gain tacit support
from the PSI as a whole or from other parties outside the gov-
erning coalition, or unless Nenni decides to throw the support
of some of his deputies to Fanfani, as has apparently happened
on certain secret ballots.
On the other hand, right-wing Christian Democrats, fear-
ful that Fanfani will get additional parliamentary support from
the PSI,now may decide to oppose him openly. They have been
voting against the government on secret ballots, but they appar-
ently prefer to postpone the real battle until their party's congress,
scheduled for 11-13 April.
Whether the left-wing Democratic Socialists decide to break
with Saragat immediately or stay with him depends somewhat on
their estimate of their eventual ability to pull the rest of the party
with them into a unified Socialist party with Nenni. Presumably,
their action will also be influenced by Nennits decision as to
whether or not he wants to bring down the government at this
time.
22 Jan 59
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CENTRAL INTELLIGENCE BULLETIN
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Portuguese Government Reported Nervous Over Opposition
Leader's Escape
/On 15 January Heririque Galvao, a leading opponent of the
Salazar regime, escaped from a Lisbon hospital. Sentenced
last year to a long prison term on charges of antigovernment
plotting� he is regarded as a martyr by a large segment of the
publiJ
Galvao's escape
has accentuated the nervousness of key members of the Salazar
regime, already apprehensive that an opposition movement of
unknown intensity may underlie the known political unrest. Po-
lice officials regard Galvao as a real threat who could provide
a rallying point for all dissident element_sj
[Galvao is an ex-army captain said to retain the respect
of many key army officers. He is a friend of General Humberto
Delgado whose opposition presidential campaign last year alarmed
the government by the unrest it revealed. Galvao was formerly
an inspector of colonies and a parliamentary deputy whose sharp
criticism of the government's domestic and colonial policies sub-
jected him to the special enmity of Premier Salazal3
Ehough dissatisfaction with Salazar seems to be increas-
ingly widespread, no group seems prepared yet to act on it.
Galvao could provide the leadership which the popular opposi-
tion to the regime has heretofore lacked. At the same time, he
could probably obtain backing from dissatisfied elements among
regime supporters who feel that Salazar has outlived his polit-
ical usefulness and that it is time for a change of governmeny
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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
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
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
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 Director
CONFIDENTIAL
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