CENTRAL INTELLIGENCE BULLETIN - 1959/04/28

• Document Type: SPECIALCOLLECTION
• Keywords: 2018 Sanitization
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03163328
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 12
• Document Creation Date: February 25, 2020
• Document Release Date: February 27, 2020
• Publication Date: April 28, 1959

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28 April 1959
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CENTRAL
62
INTELLIGENCE
BULLETIN
CUMENT NO.
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28 APRIL 1959
I. THE COMMUNIST BLOC
IL ASIA-AFRICA
Iraqi Army schedules show of force
in tribal areas Tr Turkish and
Iranian borders.
Iran - Discovery of major new oil
field will reopen question of pipe-
line through Turkey to Mediterranean.
III. THE WEST
British release of blocked sterling
account ahead of schedule puts UAR
technically in default on compensa-
tion to old company stockholders
and jeopardizes IBRD loan for
Suez Canal improvement.
Argentina - President Frondizi is-
sues decree banning all Commu-
nist party activities, at least dur-
ing state of siege.
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CENTRAL INTELLIGENCE BULLETIN
28 April 1959
DAILY BRIEF
I. THE COMMUNIST BLOC
II. ASIA-AFRICA
Iraq: The Iraqi Army has scheduled brigade-level maneu-
vers-Taa show of force in northeastern Iraq near the Iranian
and Turkish borders which were to have begun on 27 April.,
The commander of the Second
Division was to take charge personally; any "enemy aggression"
was to be countered rigorously; and two Iraqi villages were to be
bombed if resistance was met. This action follows a series of
skirmishes between disaffected Iraqi Kurdish tribal elements
and Iraqi police and border patrols. The
Iraqi Government believes these tribal chieftains are lining up
support of additional Iraqi tribes and are getting arms and ad-
vice from Iran and Turkey. (Page 1)
Iran: A new oil fields, apparently of major proportions, has
been disco red by the government-owned National Iranian Oil
Company about 100 miles south of Tehran. The first well tested
at a rate of more than 7,000 barrels daily. As a result of this
discovery, the Turkish and Iranian agreement signed last year
calling for the construction of a major pipeline to the Mediter-
ranean will again receive active consideration. This pipeline
Of- would be designed to reduce Iran's dependence on the Iraq-
dominated Shatt-al-Arab River at the head of the Persian Gull)
( e 2) (Map)
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III. THE WEST
Britain-UAR: 6.2ondons, impatient with Cairo's delay in
restoring diplomatic relations, has made a financial maneu-
ver which jeopardizes Nasir's efforts to secure an IBRD loan
to improve the Suez Canal. Under the terms of a 1958 agree-
ment,release of an Egyptian blocked sterling account would
require the UAR to compensate stockholders of the old Suez
Canal company. The British have unblocked this account
earlier than scheduled, and say they will vote against the
IBRD loan if the UAR is in default on its compensation agree-
ment. This action will tend to confirm the impression held
by many UAR officials that the British are continuing to work
against Nasir) (Page 3)
Argentina: To counter continuing strikes and agitation
against the US-backed stabilization program, President Fron-
dizi has issued a decree banning all activity by the Communist
party and associated groups,At least for the duration of the
present state of siege. He believes the Communists and Peron-
istas are mainly behind this agitation. Several anti overnrnent
demonstrations may be attempted on 1 May. (Page 4)
28 Apr 59
DAILY BRIEF ii
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I. THE COMMUNIST BLOC
No Back-up Material
IL ASIA-AFRICA
Renewed Clashes Between Iraqi Army and Dissident Tribal
Elements
Clashes have occurred intermittently for several weeks
between Iraqi police and border patrols and dissident tribal
elements in northern Iraq. Involved are afew of the Kurdish
tribes in northeastern Iraq near the border with Iran and Tur-
key and an uneasy amalgamation of Shammar tribes in the
northwestern area on both sides of the Syrian-Iraqi border.
The UAR is providing weapons and training to the Shammar;
Iran is reportedly furnishing some support to the dissident
Kurdish tribes.
While these tribal elements do not have the capability
for a full-scale uprising, their harassing raids on police
posts and villages have become a major nuisance. Brigadier
Janabi, commander of Iraq's Second Division, has moved troops
and some armor to both of the problem regions and has directed
village authorities, police chiefs, and popular resistance leaders
to operate according to his orders.
On 24 April, he headed a procession of regional dignitaries
on a visit to the extreme northwest where they welcomed home
a group of Shammar tribal chieftains who had earlier fled to
Syria. They also reiterated promises of amnesty for any others
who return to the Qasim fold. New tribal clashes may, however,
have occurred in this area on 26 April.
In addition
Janabi was to be in personal command of a brigade-level show
of force to have begun on 27 April in the Kurdish mountain coun-
try near Iraq's frontier with Iran and Turkey.
28 Apr 59
CENTRAL INTELLIGENCE BULLETIN
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Page 1
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CYPRUS
Benlyas
Tartu
Tripoli/0
LEBANON
BEIRUT
Sidon
Haifa
ISRA L
Tel Av
HELE
90427 4
AMMAN
JORDAN
T U R KE Y
� ATCHOCK
IN ZALAH
BUTMAH
Mosul
Al Hadithah
� Oil field
Oil pipeline
Proposed oil pipeline
- Oil pipeline under construction
UNCLASSIFIED
KIRKUK
Kirkuk
Kheingin
�Hamadan
SARAJ EH -2 A
DLSCOVERY WELL
Kermanshah
NAFT 1 SHAH
BAGHDAD
KUWAIT
NEUTRAL
ZONES
LAL1
MASJED SOLEYMAN
NAFT SAF1D
HAFT GEL
AGHA JAIN
PAZANUN
hor a GACH
SARAN
All Nharg
Island
Persian Gulf
28 APRIL 1959
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Major New Iranian Oil Field Likely
Ctin oil field, apparently of major proportions, has been
discovered by Iran's government-owned National Iranian Oil
Company (NIOC) about 100 miles south of Tehran. The dis-
covery well, Sarajeh 2, is located on a structure about 15
miles long and 7 miles wide, and tested at more than 7,000
barrels daily from a productive zone more than 500 feet
thick. Sarajeh is only 30 miles south of the ill-fated well
Alborz 5 in the Qom area which in 1956 blew wild at a daily
rate of 80,000 to 100,000 barrels for three months. The two
wells draw from different oil-bearing structures)
The new discovery will again bring into active considera-
tion a Turkish-Iranian agreement signed last year for construc-
tion of a 500,000-barrel-per-day pipeline from the Qom area to
the Mediterranean. This pipeline would reduce Iranian depend-
ence on the Iraqi-dominated Shatt-al-Arab River at the head of
the Persian Gulf. One earlier objection to the plan was that
Qom crude is very waxy and would require expensive heating
to keep it flowing over the high mountain passes in Turkey
and Iran. Oil from the Sarajeh well, however, is extremely
light 42 d y) and flows relatively easily)
CONFIDENTIAL
28 Apr 59
CENTRAL INTELLIGENCE BULLETIN Page 2
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III. THE WEST
British Financial Maneuvers Against Egypt
Q._iondon, impatient with Cairo's delay in resuming diplomatic
relations, has made a financial maneuver which seriously jeopard-
izes Egyptian efforts to secure an IBRD loan for expanding the
Suez Canal. Under the terms of a 1958 agreement, London's re-
lease of Egyptian blocked sterling would require the UAR to com-
pensate stockholders "forthwith" to the amount of $22,960,000
as part of an accelerated repayment schedule. The Bank of
England now has removed all restrictions on Egypt's blocked
sterling account earlier than scheduled, thereby apparently bring-
ing into effect this hitherto unimportant clause. If Cairo fails to
make'payment "Thrthvifith.,"it probably will be in technical default
and its credit standing will be seriously impaired. In such an
event, the British_eate, they would be unable to vote for a World
Bank loan to Egypt)
6e present crisis was brought to a head when Bank of
England officials, before Cairo was officially informed, tipped
off George-Picot, head of the Suez Company, of their intention
to release the Egyptian account. Armed with this information,
Georges-Picot, in a letter to the UAR, demanded an accelerated
payment of $222960,000
(LIAR officials are reported enraged over these maneuvers.
Cairo has not responded to the Bank of England2 but apparently
will not make payment and w'll not compromise its position that
holds the bank's action illegal
28 Apr 59
CFKITRAI 114.1TrI I ltPIJC I III PTIKI
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Argentina Bans All Communist Activities
Argentine President Frondizi issued a decree on 27 April
banning all activity by the Communist party and associated
groups. He evidently hopes to curtail the Communists' capa-
bilities and to undercut any Peronista moves to collaborate
with the Communists, especially in forthcoming union and pro-
vincial elections.
Frondizi is convinced that the Communists and some ex-
tremist Peronista,s are fomenting the present agitation against
the US-backed economic stabilization program, such as the
Communist-led bank strike and the riots of 3 April which led
to the expulsion of five Soviet diplomats. New demonstrations
by Communists and Peronistas and by the Communist-led stu-
dent federation are reportedly planned for 1 May.
As Frondizi had warned, the government's austerity and
stabilization measures since 1 January have caused hardship
for labor. The cost of living has risen about 47 percent, and
real wages are the lowest since Frondizi took office on 1 May
1958. On the other hand, the government has signed additional
development contracts with private petroleum companies, and
crude production during the first quarter of 1959 increased 33
percent. This, together with a favorable export movement and
reduced imports, indicates to some officials that a "reasonable"
trade balance for the year may be achieved reversing the past
decade of heavy trade deficits.
SECRET
28 Apr 59 rckITD AI IMTPI I In.FIQCF RI II I FTNI
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'41.1e
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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