CENTRAL INTELLIGENCE BULLETIN - 1959/10/19

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03029885
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 11
• Document Creation Date: February 25, 2020
• Document Release Date: February 27, 2020
• Publication Date: October 19, 1959

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19 October 1959
Copy No. C
CENTRAL
INTELLIGENCE
BULLETIN
DOCUMENT NO.
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19 OCTOBER 1959
I. THE COMMUNIST BLOC
Peiping trying to patch up rela-
tions with some Asian neighbors;
Invective against US continues.
II. ASIA-AFRICA
Ceylon exploring ways to reduce
economic ties with Peiping.
Iraqis see Baathists involved in at-
tempt on Qasim's life.
Saudi Arabia-- Dispute between Saud
and Faysal over governmental powers
continues.
Japan--Right-wing faction decides to
withdraw from Socialist party.
III. THE WEST
Guatemala--Demonstrations planned
by opposing political groups for 20
October may lead to serious violence.
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T CRET
CENTRAL INTELLIGE
19 October 1959
DAILY BRIEF
L THE COMMUNIST BLOC
IN
Communist China: While continuing their propaganda in-
vective against the United States, the Chinese Communists are
trying to refurbish their reputation in neighboring Asian neutral
states. Peiping's Foreign Minister Chen Yi told a visiting Bur-
mese delegation on 17 October that China "wanted to exist in
peace with all its neighbors and with all the countries of the
world." be Chinese made an earlier overture to the Burmese
on 25 September, when the Chinese ambassador in Rangoon as-
sured the Burmese premier that China accepted Burma's defini-
tion of the border with reservations only about a few small areas3
On 6 October; Premier Chou En-lai sent Nehru a message which
termed the Sino-Indian border issue a mere episode M an "age-
old friendship." (Page 1)
II. ASIA-AFRICA
Ceylon - Communist China: Several top government offi-
cials in Colombo are seeking ways to reduce Ceylon's economic
ties with Communist China. Colombo has long been dissatis-
fied with the terms of its rice-rubber barter agreement with Pei-
ping. The minister of trade now has suggested that the United
States furnish the $3,000,000 in aid which the Chinese are provi
ing for Ceylon's rubber replanting program. He feels this step
would pave the way for Colombo to abrogate the entire rice-rubber
pact. A recent contract to buy rice from Burma has improved Cey-
lon's position as far as its food requirements are concerned, thereby
lessening its dependence on Chinese supplies,:j
(Page 2)
Iraq:(finance Minister Hadid has informed the British am-
bassador in Baghdad that the Baathists were involved in the attem
IS' on Qasim's life, "perhaps with the connivance of Nasir."
which reports the arrest of a former editoii
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leaves the hospital in the next few days,
t.JAR intelligence in Baghdad has ad-
visee antiregime elements not to carry out any "follow-up action'
until a more opportune time.(
of the Baathist newspaper, tends to support Hadid's remarks.
Iraqi security measures remain strict. Authorities fear the Com-
munists will demonstrate against their o7ponents when Oasim
sauai AraPia: a'ne aispute oetween iung aaua ana t.,rown
Prince Faysal over governmental powers continues. Saud, wh
is seeking to reassert his authority, says that he will act as prirde
minister during Faysal's planned absence for medical treatment in
Europe. Faysal insists that one of the princes assume the post,
and he delayed his departure. Some informed Saudis believe
Faysal may resign as prime minister. However, since the royal
princes probably backed,Faysa I.OrneLteXPP9rP,137. compromise
was apparently reached..?
Japan: The Japanese Socialist party's right-wing faction, headed
by Suebiro Nishio, has decided to secede from the party and to form
a "truly democratic socialist party." The secession, while not yet
official, is based on Nishio's opposition to the party's increasingly
pro-Communist orientation and domination by left-wing labor unions.
Nishio apparently is supported by about 30 of the 249 Socialist Diet
members, and he must attract considerably more Socialist Diet
members to form an effective new party. The Socialist split may
have a divisive effect on Prime Minister Kishi's Liberal-Democratic
party, which was formed in 1955 to counter the merger of the Left
and Right Socialists. Kishi may thus have additional difficulty in
holding his party in line on important issues, including revision of
the US-Janane c4P qpruritv trpstv and relations with Communist
China.
III. THE WEST
Guatemala: ijerious disturbances may occur on 20 October,
anniversary of the 1944 revolution that initiated a decade of left
ist rule in Guatemala. Extreme leftists are planning a massive
parade,while an anti-government rightist faction is reported to be
Kt:A.
19 Oct 59
DAILY BRIEF
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Ckeparing for counterdemonstrations and riots of sufficient vio-
lence to cause the overthrow of President Ydigoras. The right-
ists' boasts of US support for their coup plans are apparently
being accepted as fact by many key Guatemalans, including the
Preside 9 (Page 3)
19 Oct 59
DAILY BRIEF iii
TO � CRET
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S_Q_NEIEE-NT7AL ak
I. THE COMMUNIST BLOC
Peiping Renews Overtures to Asian Neutral Neighbors
Communist China's Foreign Minister Chen Yi told a visiting
Burmese delegation on 17 October that China "wanted to exist in
peace with all its neighbors and with all the countries of the world."
Chen declared that China's economic programs required "a peace-
ful environment and continued relaxation of the world situation."
The foreign minister's remarks, which contained the specific
assurance that China was particularly interested in peaceful re-
lations with bordering countries, suggest that Peiping intends to
follow up its recent overtures to these countries in an effort to re-
furbish its international reputation. On 6 October Premier Chou
En-lai sent Nehru a message which termed the Sino-Indian border
issue a mere episode in an "age-old friendship."
C01:1 25 September, the Chinese ambassador in Rangoon as-
sured the Burmese premier that China accepted Burma's defini-
tion of the border� with reservations only about a few areas.
Since part of Burma's border claim is based on the McMahon line,
which China refuses to accept as its border with India� Peiping
may be trying to make the Burmese feel they are being granted
something denied the Indians and to induce them to resume border
negotiations. Last spring, the Burmese premiers disgusted with
Communist delaying tactics, submitted a package proposal as
Burma's "final offer."'
The Chinese continue their propaganda invective against the
United States, which is charged with "armed occupation" of Tai-
wan and with deliberate measures to create new international
tensions.
19 Oct 59
-CONFIDENITAL-
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IL ASIA-AFRICA
Major Reduction of Sino-Ce lonese Economic Ties Possible
(Ceylonese Minister aLCommerce andOrrade R. G. Senana-
yake and Governor General Goonetilleke apparently advocate termi-
nating Ceylon's rice-rubber barter agreement with Communist
China provided Ceylon can secure financial support for its rubber-
development program in lieu of the $15,000,000 Chinese grant which
accompanies the five-year barter agreement. Senanayake has asked
whether the United States would furnish $3,000,000 in aid to cover
expenditures made in advance of receiving the first installment of
Peiping's grant. Whether new Prime Minister Dahanayake and
other cabinet and government members favor such action is un-
certain, but economic factors rather than Dahanayake's professed
anti-Communist views are likely to determine any government de-
cision on the matter:]
(pu- ring the past two yearsiColombo has grown dissatisfied with
the cOnditions attached to Chinese Communist aid and with the terms
of the rice-rubber contr ct. The economic benefits Ceylon once de-
rived from the agreement, first negotiated in 1952 and renewed in
1957, have since been virtually nullified by rising rubber prices
and abundant world rice supplies. During protracted negotiations
with Peiping on the 1959 rice-rubber protocol, Colombo bargained
hard for more favorable terms but was unwilling to relinquish the
agreement, partially because of 'concurrent difficulties in conclud-
ing a satisfactory 1959 rice agreement with Burma. However,
Colombo and Rangoon on 25 September signed a four-year trade
pact effective in 1960 under which Ceylon will purchase at reduced
prices 300,000 tons of rice annually--100,000 tons more than un-
der its 1959 contract. It therefore is in a better position to cancel
its contract with Communist China than at any nrpvious
{_Ceylon has been attempting to reduce the price of the 80,000 tons
of Communist Chinese rice still to hP chinned under the 19(1 contract,
the Ceylonese Government intends to cancel shipment of this amount
if Peiping maintains the contract price. This does not necessarily
indicate that the government has decided vet to terminate the entire
agreement, however.
a Ceyl6ife delegation would leave for Commu-
nist China on 22 October for a week of negotiations on the 1960 rice-
rubber protocol provided the Chinese officials agreed.)
312 P.� E E
19 Oct 59
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4It _...)t..C-Art:
III. THE WEST
Political Violence May Be Imminent in Guatemala
[Guatemalan President Ydigoras is facing the most serious
crisis of his 19-month-old administration, which has been charac-
terited by, an almost total absence of positive accomplishment
and leadership. Harassed by rapidly growing leftist forces and
subversive plotting by rightist factions, he has tried by divide-
and-rule tactics to maintain his tenuous hold on power. He now
appears to be losing control, and various political factions, as
well as groups in the politically important armed forces, are
maneuvering in anticipation of what they apparently regard as
the President's inevitable downfall. US Ambassador Mallory sees
a strong possibility of serious violence in the very near future.'
(Communist-influenced leftists are planning a massive parade
on 20 October, anniversary of the 1944 revolution that initiated
a decade of leftist rule in Guatemala, and a rightist faction is re-
ported to be preparing for counterdemonstrations and riots of
sufficient violence to cause Ydigoras' ouster.!
(The rightist Nationalist Democratic Movement (MDN), dis-
credited remnant of the political machine of the late President
Castillo Armas, is in the forefront of the plotting and is believed
responsible for the more than 30 terrorist bombings in the cap-
ital since last July. Its boasts that it has US backing for its coup
plans are apparently being successfully used to recruit army offi-
cers to the MDN cause. President Ydigoras, who has long sus-
pected US opposition to him, revealed his firm conviction in a
conversation with the ambassador on 14 October that American
"groups" are supporting his enemies.)
(Ambassador Mallory believes that, whatever the conse-
quences of an outbreak of violence, US interests would inevita-
bly be adversely affected.7
IA rightist coup would be certain to arouse strong popular op-
position and would tend to unify opposing leftist forces which would
then become even more susceptible to Communist control,
>iLefir6
19 Oct 59
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_ _ _
ftgoo' Now
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
Director, National Aeronautics and Space Administration
Special Assistant for Security Operations Coordination
Board of Consultants on Foreign Intelligence Activities
Special Assistant for Foreign Economic Policy
Executive Secretary, National Security Council
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 Army
Director of Naval Intelligence, Department of Navy
Assistant Chief of Staff, Intelligence, Department of the Air Force
Supreme Allied Commander, Europe
Commander in Chief, Pacific
The Department of Commerce
The Secretary of Commerce
Federal Bureau of Investigation
The Director
Atomic Energy Commission
The Chairman
National Security Agency
The Director
National Indications Center
The Director
CO TIAL
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