CENTRAL INTELLIGENCE BULLETIN - 1959/04/10

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03156034
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 13
• Document Creation Date: February 25, 2020
• Document Release Date: February 27, 2020
• Publication Date: April 10, 1959

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CENTRAL
INTELLIGENCE
BULLETIN
DOCUMENT NO,
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DECLACSTIO
CLASS. CHANGED TO: TSgISA::1
NEXT REVIEW DATE:
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10 APRIL 1959
I. THE COMMUNIST BLOC
USSR continues military aid to UAR
despite recent frictions.
�.)
Large number of refugees arrived in
West Berlin in past two weeks.
IL ASIA-AFRICA
Philippines - Cabinet shake-up ex-
pected soon; Defense Secretary
Vargas may be replaced.
III. THE WEST
West Indies Government to propose
revision of US-UK base rights.
Cuba - Castro to seek substantial
economic aid during next week's
visit in US.
Argentina - Frondizi to oust more
bloc diplomats.
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CENTRAL INTELLIGENCE BULLETIN
10 April 1959
DAILY BRIEF
I. THE COMMUNIST BLOC
USSR-UAR: Despite recent frictions over Nasir's anti-
Communist campaign in the Middle East, deliveries of Soviet
military aid to the UAR continue. These deliveries probably
include 15 jet aircraft from Czechoslovakia. New deliveries
of military equipment, some of which are expected to reach
the UAR this month, will be the first major bloc arms ship-
ments since the summer of 1958. Arms negotiations, begun
in Moscow last July, are apparently continuing, and as of 4
March appear to have involved major new items of military
equipmfnt including some lair armament and possibly naval
craft. (Page 1)
Berlin:ahe sudden increase in the number of East Ger-
man riliiieFs arriving in West Berlin--5,485 during the last
two weeks--may reflect popular alarm at indications that the
regime intends more vigorous enforcement of its hard-line
policies. An upsurge in the number of refugees is normal dur-
ing the Easter period, but the total for the holiday pertod this
year is higher than in 1957 and 1958. The number of 'refugees
was the largest in one fortnight since Se ember 1958, when
_pl
approximately 6,400 entered West Berlin.
Cfiuring March, 204 physicians fled' o West Berlin, an,
indication that East Germany's efforts to win over
men by political concessions are still ineffectiv
(Page 2)
II. ASIA-AFRICA
Philippines:(president Garcia may be planning shortly
ti to replace several Philippine cabinet officials including a num-
ber who have been under congressional attack for improp.g.
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&nduct. Pro-Garcia Congressman Salipada Pendatun has pri-
vately stated that he expects to be named defense secretary in
place of General Vargas. Pendatun presumably would be a
greater political asset for Garcia because of his large Moslem
following, and he would probably be willing to use the army on
behalf of the Nacionalista party in the coming Senate and mu-
nicipal elections:1 (Page 3)
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III. THE WEST
Britain - West Indies Federation: ressures are mount-
ing for revision of the 1941 US-UK agreement concerning bases
in the Caribbean, notably the naval station at Chaguaramas,
Trinidad., Chief Minister Eric Williams of Trinidad, who has
been making an issue of the base rights question, has proposed
a revision conference to the West Indies federal government,
which will probably support his request. The British Foreign
Office wants an early joint US-UK conference to agree on ac-
ceptable revisions for presentation to the West Indie
(Page 4)
Cuba: Prime Minister Fidel Castro will seek substantial
US financial aid during his visit here beginning 15 April, Felipe
Pazos, president of Cuba's National Bank, advised the US-Em-
bassy in Havana on 8 April that because of the decline in the
world demand for sugar and increasing unemployment in Cuba,
the bank has modified its former position against foreign finan-
cial assistance. Pazos is reported to have state4
that he is pessimistic concerning Cuba's future under the
Castro regim-Q (Page 5)
Argentina: President Frondizi intends to declare persona
non grata at least three other bloc diplomats including the Soviet
ambassador and the Rumanian minister, in addition to the five
named for expulsion on 7 April on charges of interfering in Argen-
tine affairs., Convinced that the Communists planned the 3 April
riots, Frondizi will use a detailed report now being prepared as
a basis for further e
entine cart
10 Apr 59
DAILY BRIEF ii
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L THE COMMUNIST BLOC
Bloc Arms SUpply to UAR
Despite recent Soviet-UAR friction over Nasir's anti-Com-
munist campaign in the Middle East, the Soviet Union continues
to honor its various military aid agreements with the UAR. Con-
tinuing deliveries include 750 tons of military equipment which
arrived at Alexandria on 2 April aboard the Soviet freighter Nikolai
Burdenko, and Czechoslovakia has already begun shipment of 15
MIG jet trainers expected to arrive this month for assembly by
UAR personnel.
Now that priority grain shipments to the UAR have been
completed at Nikolaev, the usual Black Sea port for arms ship-
ments to nonbloc countries, Soviet factories and depots have re-
sumed delivery of military equipment to the port. These rail
deliveries appear to be in excess of present Soviet obligations
to countries other than the UAR, and probably include some new
shipments for Egypt or Syria.
Military training programs in the USSR also continue, includ-
ing a course for 50 high-ranking UAR officers at Frunze Military
Academy.
A UAR mission in Moscow is apparently still engaged in nego-
tiations begun last July for at least $50,000,000 in additional aid,
including a wide range of land armament and possibly naval craft.
The negotiations have been protracted not only because of Cairo's
need to re-study coordinated UAR requirements after large-scale
bloc arms shipments to Syria last summer, but by Moscow's refusal
to supply late-model jet aircraft--MIG-19 fighters and TU-16 bomb-
ers�and insistence on more stringent controls over UAR arms or-
ders and repayment terms.
the
tempo of negotiations was being accelerated
-TOP SECRET
10 Apr 59 CENTRAL INTELLIGENCE BULLETIN
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East German Refugee Figures Mount Sharply
e sharp rise in the number of refugees seeking asy-
lum in West Berlin in the two weeks ending 7 April, while
reflecting increased opportunities for escape afforded by the
four-day Easter holiday, probably indicates growing popular
alarm evoked by the regime's recent declarations that its so-
cialization policies will be implemented more vigorously.
During the last week of this period some 3,462 East Germans
were processed by refugee officials in West Berlin, compared
with only 1,462 in the week ending 24 March and 2,023 the week
ending 31 March. This is the largest total in one fortnight
since last September, at the close of the traditional summer
mass flights. The two-week total of 5,485 also exceeds the
numbers escaping during the comparable Easter eriods in
1957 and 1958, although falling below that of 195
af more immediate concern to the East German regime
is the defection of some 204 doctors during the month of March,
compared with a total of 1,242 during the whole of 1958. The
loss of this number of physicians, more than six months after
the regime made important political concessions to halt the ex-
odus, will aggravate the already serious shortage of compe-
tent professional men which has forced the regime to import
doctors and medical professors from the satellites)
SECRET
10 Apr 59
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II. AS1A-AFRICA
� Philippine Cabinet Shake-Up May Occur Soon
6-resident Garcia may be planning soon to carry out a long-
rumored revamping of the Philippine cabinet in anticipation of
the mid-term local and senatorial elections scheduled for No-
vember. Following press reports that the changes were to be
discussed with the Council of Leaders last week, pro-Garcia
Congressman Salipacia Pendatun told
his appointment to replace Defense Secretary Jesus
1)
Vargas would be announced in late April,)
(Pendatun had previously declared himself in line for the
defense post when Vargas, a retired general who may have pres-
idential ambitions, was accused in late 1958 of plotting a military
coup. Pendatun could prove a greater political asset to the ad-
ministration because of his strong support among Moslems in
the southern Philippines and his possible willingness to allow po-
litical use of the army in the elections. Although he is consid-
ered generally pro-American, Pendatun's comments that he
would work to improve American treatment of Philippine vet-
erans and to reduce the size of the American military advisory
group suggest that he would follow a strongly natiQ1alist line
if the administration adopts such a campaign theme
A general reshuffle would enable Garcia to remove several
key argets of the corruption charges which have contributed
to political frictions within the ruling Nacionalista party and to
his own unpopularity. Cabinet changes may involve the secre-
taries of finances, commerce, and agriculture, who have been
under congressional attack for alleged financial malpractices.
The economic coordinator has already tendered his resignation
under similar charges. The secretary of education is plan-
ning to retire, and nationalistic Secretary of Justice Barrera
is scheduled for appointment to the Supreme Court in June.
SECRET
10 Apr 59
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ILL THE WEST
Revision oi west incnan Base Agree Sought
Cessures are mounting for rev. _on of the 1941 US-UK
leased bases agreement regarding US iacilities in the Caribbean.
Principal facilities involved are the naval E tation at Chaguara-
rnas, Trinidad, and guided-missile tracking stations at Antigua
and St. Lucia
Chief Minister Eric Williams of Trinidad, who has made a
major issue of the base question, has proposed to the West
Indies Federation government a revision conference attended
by Trinidad, the federal government, the US, and Britain.
While Caere is as yet little pub1;82 concern over the presence
' IIIIi bases, Williams' political influence is probably -sufficient
to ,orce the federal government to support his request. Wil-
liams continues to want Chaguararnas for the fed,:y.ral capital and
is dissatisfied with the US assurance that the mi itary need for
Chaguaramas will be reconsidered in about 1968) (The British Foreign Office, both to undercut Williams and
to o tain federation good will for London, wants to arrange an
early US-UK conference to agree on limited revisions for pres-
entation to the federal government. The Foreign Office argues
that by revising the agreement now with British assistance, the
US will get better terms than by waiting until the federation be-
comes independent, probably in about five years, and that the
US base position will be more secure if the federation subscribes
to the leasing agreement. The Colonial Office favors different
tactics to achieve the same result, arguing that the West Indians
will make fewer demands if flattered by full participation from
the start in a tripartite conference.)
London insists that the US right to retain bases, including
Cha uaramas, will not be questioned, and that it would suggest
only minor revisions regarding customs and jurisdiction within
base areas, for example. London might also suggest that the
US should offer some concession such as an annual rent to the
federation)
10 Apr 59
CFKITRAI INTFI I InFNCE BULLETIN Page 4
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Cuba May Seek US Loans
Prime Minister Fidel Castro, who begins a visit to Wash-
ington on 15 April, may seek substantial US financial aid as
well as a larger share of the US sugar market, Cuba's eco-
nomic outlook has been growing steadily worse during recent
weeks, and the extremely low price of sugar on the world
market threatens to reduce the national income this year.
Sugar normally accounts for about 25 percent of Cuba's in-
come
ll
elipe Pazos, president of the Cuban National Bank, ad-
vise the US Embassy in Havana on 8 April that the unfavorable
world sugar market and increasing unemployment in Cuba had
caused the bank to reverse its attitude toward foreign financial
assistance. The bank was unable to reach agreement with an
International Monetary Fund team which visited Cuba in March
in connection with a proposed $25,000,000 credit., Pazos� who
will accompany Castro to the United States, favors resumption
of aid talks, and has suggested the possibility of discussing a
balance-of-payments loan and severalan -
cultural and development projects.
Pazos reportedly expressea pes-
simism concerning Cuba's future under the Castro regime)
Several other observers of Cuban developments have re-
cently voiced similar pessimism. Serafino Romualdi, AFL-CIO
representative to the Inter-American Regional Labor Organiza-
tion (ORIT), reported on 8 April that ORIT has concluded that
the Castro government is opening the doors to Communism in
Cuba)
SECRET
10 Apr 59
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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
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 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
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
United States Information Agency
The Director
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