CENTRAL INTELLIGENCE BULLETIN - 1959/03/21

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03160624
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 14
• Document Creation Date: February 25, 2020
• Document Release Date: February 27, 2020
• Publication Date: March 21, 1959

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21 March 1959
Copy No. C 63
CENTRAL
IYTELLIGENCE
BULLETI\
DOCUMENT NO.
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21 MARCH 1959
I. THE COMMUNIST BLOC
USSR replaces top economic planner.
Soviet Union apparently moving addi-
tional missiles into East Germany.
Polish party congress shows Gomulka
undisputed master.
II. ASIA-AFRICA
Cairo fears cessation of Soviet aid.
UAR seizes Israeli cargoes from
Israeli-chartered foreign vessels in
Suez Canal.
Libya's proposal would double US pay-
ments for base.
Omani rebel leaders flee to Saudi
Arabia.
0 Indonesia - Government preparing
major action against North Celebes
dissidents; rebels receiving aid from
Taipei.
0 Singapore - British now fear pro-Com-
munists may take over People's Action
party.
LATE ITEM
Peiping employing force to quell
Tibetan unrest.
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CENTRAL INTELLIGENCE BULLETIN
21 March 1959
DAILY BRIEF
I. THE COMMUNIST BLOC
*USSR-Gosplan: L I. Kuzmin has been removed from the
USSR's top planning post (Gosplan) apparently in some dis-
favor. However, his assignment to the new State Science
and Economic Council indicates that his technical experience
is still valued. A. N. Kosygin, a candidate member of the
party presidium, was chosen to succeed Kuzmin as chief of
Gosplan, probably because of his prior experience there. Be-
fore his assignment as USSR deputy premier in July 1957;
Kosygin had been Kuzmin's first deputy. The change does
not appear to reflect on the Seven-Year Plan, approved by
the party congress in February, nor does it presage any
ehancre in 'basic economic. nriorities
USSR - East Germany: a Soviet military train, prob-
ably carrying missiles and associated equipment, was ob-
served southeast of Berlin on 18 March. A similar observa-
tion was made last October. Numerous unconfirmed reports
have indicated the presence of tactical missiles in East Ger-
many. An increasing number of missile mock-up sightings
indicates that missile training of some kind is being conducted
in Soviet units in East nermanv 7 I
roiana: - rars c mcretary uomunca nas emergea Ix-0m me
party congress as undisputed master of the Polish Communist
party. Not only has Gomulka created a party leadership of
his own loyal supporters and eliminated opponents from im-
ortant positions, but he has also succeeded in having the
congress annul the charges he himself had accepted in Septem-
ber 1948branding him and his adherents as "right-wing na-
tionalist deviationists." Congress actions also reflected
Gomulka's determination to follow a moderate course in do-
mistic matters while supporting the USSR on foreign policy.
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IL ASIA-AFRICA
UAR-USSR: KNficial concern is growing in Cairo that
the USSR may halt economic and military assistance in re-
taliation to Nasir's anti-Communist campaign.
Nasir is apparently being used to
convey this feeling to American officials, probably in the
hope that assurances of support can be obtained from the
United States in the event of Soviet sanctions. Despite the
continuing hostile exchanges between Cairo and Moscow,
hnth are annarentiv still trvimy 1-n nvnicl a complete breakl
(Page 1)
Israel-UAR: Erhe UAR has seized cargoes of Israeli or-
igin from Liberian and West German merchant ships prepar-
ing to transit the Suez Canal.
the ships are chartered by Israel, and therefore in effect
are operating as enemy ships. "Innocent" Israeli cargoes
aboard neutral ships have heretofore not been seized despi e
the technical state of war that still exists between the two
countries. Israel contends, in a note to the UN Security Coun-
cil, that the action contravenes Security Council resolutions,
and Prime Minister Ben-Gurion has reiterated Israel's de-
termination to secure its "freedom of navi7ationfl
(Page 2)
Libya: The Libyan Government has formally proposed
terms for the revision of the agreement on American base
rights. Under these terms the US would guarantee an "an-
nual rent" payment of at least $45,000,000 for the duration
of the agreement�through 1970. This proposal more than
doubles the present level of US aid and removes all restric-
tions on its use.
*The violent and large-scale rioting which took place in
Tripoli on 20 March does not appear related to US-Libyan
relations. It was sparked by well-organized students demon-
strating in favor of Nasir and against Qasim and the Commu-
nists. The 20 March disorder was the third, and most violent,
21 Mar 59
DAILY BRIEF ii
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of a series of ro- asir demonstrations in Libyathis week.
Oman - Saudi Arabia: The night ot the three top oma,m
rebel leaders and their sons to Dammam in eastern Saudi
Arabia about 16 March has removed from Oman all effective
leaders in the rebellion against the British-backed Sultan of
Muscat. Any current rebel effort will be hampered by the
leaders absence from the dissident area; however, Saudi
Arabia and the UAR will probably attempt to train and, equip ,1
nl-sn 1 �C,-n,nno
Indonesia: ff..tie government is apparently planning "tun-
scale operations" against the North Celebes dissidents early
this summer. As part of its plan, it is preparing to move sev-
eral more battalions from East Java to its Celebes operational
command. Meanwhile, government forces on North Celebes
are being hard pressed by aggressive dissident units. The
capabilities of the dissident units have recently been enhanced
by material aid from Taiwan, and negotiations with Taipei for
' quipment are continuing-.3
(Page 3)
Singapore: e British Colonial Office, in an apparent
change of attitude, is becoming increasingly apprehensive over
the prospects of a left-wing extremist take-over in the People'
Action party after the party's anticipated victory in the general
elections expected on 30 May. The British, who have stated
that they can work with the party's moderate leader Lee Kuan
Yew, now fear that he may lose control to its strong pro-
Communist elements.]
(Page 4)
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LATE ITEM
*Tibet: Peiping is adopting forceful measures to end the
Tibetan unrest. Indian Foreign Secretary Dutt on 20 March
confirmed that fighting had occurred around Lhasa and a
"strong Chinese punitive force" is
en route to the Tibetan capital. New Delhi continues to be
apprehensive over the possibility of serious clashes in the
event Chinese troops pursue dissident forces into Indian ter-
ritory, and has instructed frontier checkposts to deny admis-
sion to any rebels fleeing Tibet. Nehru probably would make
an exception, however, in the case of the Dalai Lama, who
is reported to have fled Lhasa on 17 March and to have re-
ylum in India
(Page 5)
21 Mar 59
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Concern Growin
I. THE COMMUNIST BLOtsi
(No Back-up Material)
II. ASIA-AFRICA
etaliation
the
United States "prepare itself for action" in the event Nasiris
anti-Communist campaign leads to Soviet retaliation.
probably designed to elicit some
American assurance of support, but may also reflect genuine
concern in Cairo that Moscow will cut off economic and mili-
tary ai.cr4
.I1here have been no reports that the current conflict has
caused any Soviet economic sanctions, but UAR-USSR rela-
tions are rapidly deteriorating and the possibility of retalia-
tory moves by Moscow is increasing. The Cairo regime has
maintained that sufficient military replacements and spare
parts are on hand to last about five years, but the already
shaky UAR economy would face bankruptcy if the USSR and
the Soviet bloc stopped their substantial cotton purchases and
ended economic and technical alai
JAR army officers are con-
vmcea it is "inevitable that the USSR will stop its assistance
if Nasir continues his attacks. These officers were alleged to
believe that Nasir's position at home would then become inse-
cure and an army coup d'etat in the Egyptian region could oc-
cur. both army and civilian circles
doubted that America could compensate for the loss of Soviet
aid, on the ground that the West will "never" help the Arabs
plaut�only the IsraelisD
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UAR Explains Seizure of Israeli Cargoes
agyaeli cargoes destined for Ceylon and Malaya have been
seized from Liberian and West German merchant ships by the
UAR because the two ships were under Israeli charter, accord-
ing to a Cairo Foreign Ministry official. They therefore are
regarded as enemy ships subject to confiscation. The ships
themselves were not confiscated, the UAR official said, out
of deference to Liberia and West Germany, and because the
status of chartered vessels is still under consideration by the
UN:1
Capetan Manolis is under outright Israeli charter and
the Lealoft is chartered by Maritime Agencies, a New York
firm controlled by the Zim Israel Navigation Company Ltd.
The official stated that this is the first time Israel has resorted
to the practice of chartering foreign ships to circumvent UAR
canal restrictions since Egypt seized the canal in 1956. Other
reports, however, indicate that some Israeli-chartered ships
have since then transited the canal without difficulty. The UAR
prohibits Israeli-flag ships from the canal, and some neutral
vessels bound for Israel have been detained, but cargoes of
Israeli origin on foreign ships heretofore have not been seized
despite the technical state of war that still exists between the
two countriesR
iNp..sir may have adopted this tactic toward Israeli shipping
at this time partly to counter Iraqi charges that he has not
firmly opposed the Israelis. Israel contends, in a note to the
UN Security Council, that the seizures violate Security Coun-
cil resolutions, and Prime Minister Ben-Gurion has recently
reiterated Israel's determination to secure its "freedom of
navigation.'
CONFIDENTIAL
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Indonesian Government to Intensify Operations Against
North Celebes Dissidents
ale Indonesian Government.. is preparing iu semi upwards
of three additional battalions to North Celebes by the end of
May as part of its "full-scale-operations plan" for that area,
according to a 14 March military message. In additions govern-
ment troops that have been fighting in North Celebes for the past
year are being replaced by fresh battalions. The government
now has approximately 8,000 troops in the are; and the rein-
forcements will probably add a minimum of 29500 men. Rebel
strength is estimated at approximately 59000,]
aovernment units in North Celebes have been hard pressed
since early February. The area commander estimated last Jan-
uary that with fresh troops and reinforcements he could crush
the rebels by summer if they received no outside support. They
were resupplied from Taiwan in Decembers howevers and the
Chinese Nationalists are reportedly planning a resupply efforA
he government meanwhile is checking on reports that the
Sumatran rebels have found a commercial source of arms in
Thailand, to be delivered by way of small islands off the Thai
and Malayan coasts. The Sumatran dissidents although suffer-
ing an arms shortages are still able to harass wide ar as in-
cludina the important rubber estates south of Meda2
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Political Moderates in Singapore Hurt by Scandal
rOfficials of the British Colonial 0 iiceieei tnat the rent
scandal in Singapore, which led to the resignation of Education
Minister Chew Swee Kee, may seriously damage the influence
of moderates in Singapore's two largest parties. According to
the British, the disclosures concerning Chew's large account in
a New York bank--of funds allegedly furnished by Americans,
but in fact supplied by Nationalist China--have assured a victory
by the Communist-infiltrated People's Action party (PAP) in the
Legislative Assembly elections now expected on 30 May. More-
over, Legislative Assembly debates concerning the scandal re-
sulted in serious countercharges by Chief Minister Lim Yew
Hock against the moderate PAP secretary general, Lee Kum
YeJ
these countercharges brand Lee as pro-British and as a
conspirator against the left wing of his own party. They are
likely to impair Lee's influence in his own party and, conse-
quently, to enhance the already good prospects of the pro-Com-
munists for taking over the party's executive committee follow-
ing the elections. This situation jeopardizes British hopes for
political stability in Singapore which appear to be largely based
on the belief that Lee will be willing to work with the British
and able to maintain control of the partiD
aLleanwhile, hopes that Chief Minister Lim Yew Hock's
Singapore People's Alliance (SPA) can elect a sizable minority
of moderates to act as a counterweight to the PAP have declined.
The Chew scandal has made other moderate parties reluctant
to accept SPA terms for an election understanding and has,
consequently, increased the prospects that the moderate votes
will be split in many districts:1
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LATE ITEM
Peiping and New Delhi Act on Tibetan Situation
Peiping is adopting forceful measures to end the Tibetan
unrest. Indian Foreign Secretary Dutt on 20 March confirmed
that fighting had occurred around Lhasa and
"strong Chinese punitive force" is en route to the
Tibetan capital. Additional evidence of
(Peiping's intent to use force was ,
a military build-
up over the past few weeks with "urgent" requests for supplies,
personnel and weapons.
The Indian Government has instructed its consul general
in Lhasa to avoid involvement in rebel activities, although it
sent a note to Communist China stressing the seriousness of
the situation and implying that Peiping should respect Tibetan
"autonomy." Indian officials on 20 March, reversing their pol-
icy of playing down rebel reports, issued a statement detail-
ing anti-government activities in Lhasa. Peiping is likely to
protest New Delhi's actions as "interference in internal affairs."
Nehru continues to be apprehensive over the possibility
of serious clashes in the event Chinese troops pursue dissi-
dent forces into Indian territory. He has instructed frontier
checkposts to deny admission to any rebels fleeing Tibet. How-
ever, if the Dalai Lama, who reportedly fled Lhasa on 17 March
after requesting asylum from New Delhi, attempts to enter India,
Nehru probably would grant him at least temporary asylum�
%nation).
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21 Mar 59 CFNITRAI INTFILIGENCE BULLETIN
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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
CONFIDENTIAL
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