CENTRAL INTELLIGENCE BULLETIN - 1960/01/19

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03031265
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 12
• Document Creation Date: March 17, 2020
• Document Release Date: March 26, 2020
• Publication Date: January 19, 1960

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I. THE COMMUNIST BLOC
USSR-UAR: The UAR announced on 18 January that the
Soviet Union has agreed to finance the second stage of the
Aswan Dam on the same basis that Moscow agreed to partici-
pate in building the first stage of the darn.
The new agreement underscores Moscow's and Cairo's
policy of continuing close economic relations
political frictions during the past year.
(Page 1)
IL ASIA-AFRICA
Iran: recent student
demonstrauulis-in�rairan were inflamed by subversive elements
and may represent the first serious subversive effort by Soviet
agents since the beginnin of tbehI 'shnrne propaganda cam-
paign about a year ago, several of the po-
lice present may have been cooperating with the instigators of
the demptratjons.
antiregime elements instigated the demonstra-
ns. ough the government warned publicly that it will take
"forceful action' popular demonstrations by dissident groups
are likely to occur from time to time, possibly to nroll the ef-
fectiveness of security element_!23 (Page 2)
Iraq: The Iraqi political scene remains somewhat obscure.
Since the legalization of political party activity on 6 January;
four groups have applied for recognition as political parties--
, /including two competing Communist factions. In addition; pro-
(Communist People's Court President Col. Maliclawi has declared
his intention of forming a "People's" party with Qasim's blessing.
Intense party activity will contimatieasti asim indicates
Which parties will be licensed. ) (Page 3)
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UAR-Bulgaria: Ei-si-asir has decided to withdraw UAR stu-
dents now in Bulgaria. his
decision stemmed from Sofia's refusal to allow the UAR Em-
bassy to investigate attacks made on UAR students by Commu
mist students from other Arab countries. This will probably
accelerate the deterioration of UAR-Bulgarian relations,
which already have been strained by Sofia's anti-Nssir nrnn-
aaanda.
Nepal- USSR: [Katmandu is considering Moscow's offers
to extend its preselit economic aid to include a more detailed
engineering survey, and possibly construction, of the projected
500- to 700-mile east-west highway across Nepal. King Ma-
hendra apparently is impressed by the preliminary aerial sur-
vey recently completed by Soviet technicians under the $7,500,-
000 aid program signed in April 19590 and is putting pressure
on Prime Minister Koirala to agree to let the USSR go on with
the job. Koirala, perhaps hoping to stimulate further US aid,
told the American ambassador he was resisting the proposal,
which would substantially increase the number of Soviet tech-
nicians in Nepal. Soviet officials probably will try to obtain
Nepalese agreement to further assistance during President
Voroshilov's state visit early in February. (
(Page 4)
III. THE WEST
West Germany - Spain: the West Germans have "indef-
initely postponed" their conversations on military cooperation
with Spain which were scheduled to take place in Madrid be-
tween 18 and 22 January. In making this decision, Bonn appar
ently has taken cognizance of warnings from General Nor stad
that such talks would have a "most adverse" effect at this time
on Bonn's relationship with some of itf4
19 Ja,n 60
DAILY BRIEF ii
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Cuba: After eight months of extralegal takeovers of pri-
vate-SIM, the Castro government has announced that it will
start court proceedings on 19 January to expropriate large
landholdings "legally." Hundreds of such actions are to be
started simultaneously all over the island and will affect Cu-
ban and foreign-owned property. The expropriations will
Increase the power of the National Agrarian Reform Insti-
tutep which already controls much of the Cuban rural econ-
omy.
19 Jan 60
DAILY BRIEF iii
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4100 In"
I. THE COMMUNIST BLOC
Moscow Agrees to Grant Cairo Additional Economic Aid
Cairo announced on 18 January that the Soviet Union has
agreed to aid the UAR in building the second stage of the Aswan
Dams on the "same basis" as Moscow agreed to participate in
the first stage of construction. The Soviet Union extended a
$1002000,000 low-interests 12-year credit to Cairo in Novem-
ber 1958 to cover the foreign exchange costs incurred during
the first stage�essentially the construction of coffer dams and
the digging of diversionary tunnels. Total foreign exchange
costs of all stages of the $1.3 billion project have been estimated
at about $40010001000. Moscow now apparently will extend an
additional credit to the UAR for equipments materials and tech-
nical assistance for construction of the main or high dam itself.
The Soviet press has given extensive coverage to the cer-
emonies held at Aswan on 9 January officially inaugurating the
start of construction on the first stage of the dam. While em-
phasizing the "selflessness" of the USSR's aid to Cairos Soviet
propaganda portrayed Soviet-UAR relations in a more friendly
vein than has been noted in recent months.
In addition to underscoring Moscow's policy of extending
economic aid to the UAR despite recurring political frictions
during the past year, the Soviet commitment will virtually
eliminate the possibility of Western participation in building
the darn,
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4111,
II. ASIA-AFRICA
Iranian Student Dembhstrations Exploited by Subversive Elements
he recent student riots in Tehran showed signs of having
been instigated by nonstudents antiregime elements, according to
both Prime Minister Eqbal and the Iranian National Information
and Security Organization (SAVAK). Eqbal claims it has been
definitely established that subversive forces attemptedAo inflame
and exploit student dissatisfaction. Forty-one adults were ar-
rested on suspicion of inciting the riot, pamphlets distributed
during the demonstration were signed by the "Central Committee
of the Tudeh (Communist) party" and by the "Students' Under-
ground Committees" and some policemen failed to attempt to re-
strain the demonstratoqj
fqbal also stated on 15 January that Soviet agents may have
been involved and that this activity may represent the first serious
subversive effort by the Soviet-backed Tudeh party since the bloc's
radio propaganda campaign against the Shah's regime was begun
about one year ag,g,
Ls stone-throwing student groups, sparked by dissatisfaction
over increased academic standards, converged on the Parliament
and Education buildings, they were dispersed by forceful police
action. Some of the rioters were injured and government property
was damaged. Continued government concern over the possibility
of a new outbreak is indicated by heavy troop and police guards at
all high schools whose students participated in the disturbance9
&cause of widespread public dissatisfaction, there is a continu-
ing danger in Iran that agitators can turn peaceful protests into vio-
lent outbreaks against the regime. Despite the Shah's attempts to
carry out reforms over the past year, the basic causes of general
discontent remain and could be exploited by dissident elemen97
19 Jan 60
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Nur' %Of
The Iraqi Political Situation
Qasim's delay in granting licenses to groups which have
applied for legal recognition under� the political parties law of
6 January is increasing the rivalry between contending fac-
tions. Four groups, including two professing to represent the
� Iraqi Communist party, have applied for recognition. These
parties include the socialistic National Democratic party
(NDP); the United Democratic Party of Kurdistan (UDPK);
an "orthodox" Communist faction led by long-time Communists
Abd al-Qadir Ismail al-Bustani and Zaki Khayris whose press
organ is Ittihad al-Shaab; and a Communist splinter group under
Daud Sayyigh, publisher of al-Mabda a dissenter from Iraqi
party leadership as far back as 1942
Sayyigh's groups which professes to have Qasim's backings
appears to have suffered a setback by the withdrawal of six
founding members. Sayyigh has accused the "orthodox" faction
of "leftist deviation" and a departure from Arab nationalist prin-
ciples, as well as a refusal to cooperate with other "democratic"
but non-Communist elements.
[Although the Communists remain the best organized party
in Iraq, they appear to be unsure of Qasim's attitude toward
them, fearing that his policy is to keep an equilibrium between
opposing political factions in the country. Qasim's reported
declaration to Sayyigh on 15 January that there must be only one
Communist party in Iraq has resulted in an intensification by the
"orthodox" Communist press to discredit the Sayyigh factio29
Anew element introduced into the Iraqi political scene is
the declaration by pro-Communist People's Court President
Col. Mandawi that he will form a "People's party" with the bless-
ing of Qasims probably after the termination of the current "trea-
son" trials about the end of January.
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Nepal Consider
Further Sovietassistance on Major Highway:
diepalese leaders appear to be split over whether to accept
further Soviet aid on the projected east-west highway across
southern Nepal. Soviet technicians recently completed a prelim-
inary ground and aerial survey under the $7,500,000 grant-aid
agreement signed in April 195_9)
Ling Mahendra apparently is impressed with the efficiency
of the Soviet experts' study and is urging Prime Minister Koirala
to agree to permit them to make a more detailed survey and possi-
bly even undertake construction of the 500- to 700-mile road.
Koirala, perhaps hoping to stimulate further American aid, told
the US ambassador on 13 January that he and the minister of home
affairs were resisting the idea. Koirala on several occasions has
attributed his government's gestures toward the Soviet bloc to
pressure from the palace. Katrnandw in general has followed
�
a policy of balancing its economic relations with Moscow, Peiping
New Delhi, and Washington in such a way as to gain maximum
benefits from,..eaclig
aoirala apparently opposes further Soviet assistance on the
road because it would require substantially increased numbers
of Soviet technicians. Only a few have been admitted so far,
to begin work on the power plant, sugar refinery, and cigarette
factory to be built under last year's grar29,
&he Nepalese minister of industry and commerce meanwhile
confirmed to the American ambassador that he was stalling on
Peiping's offer to provide a cement plant under its 1956 aid
agreement, apparently also because of reluctance to admit Chi- ,
nese technician9
19 Jan 60
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NtisofLj
'41�00
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
Director, Office of Civil and Defense Mobilization
Director, National Aeronautics and Space Administration
Special Assistant for Security Operations Coordination
Chairman, 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 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
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