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July 8, 1958
PDF icon CENTRAL INTELLIGENCE BULL[15777345].pdf708.42 KB
NNW Release: 2020/01/23 vi604Eits-RET 3.5(c) Nor' 3.3(h)(2) 8 July 1958 Copy No. C 57 CENTRAL INTELLIGENCE BULLETIN DOCUMENT NO. NO CHANGE IN CLAS. ILNOLAEIGEG CLASS. CH:5,C.3E-D TO: TS NEXT IIEVEW DA-FE: AU � R 7 DATE -Mix-SECRET _REVIEWER: _ Approved for Release: 2020/01/23 C03169493 proved for Release: 2020/01/23 C03169493 - � - TOP SECRET Approved for Release: 2020/01/23 C03169493 Approved for Release: 2020/01/23 C03169493 a 11110 8 JULY 1958 I. THE COMMUNIST BLOC New Communist international journal to begin publication next month. No Chinese Communist aircraft ob- served on coastal fields opposite Taiwan. II. ASIA-AFRICA Lebanon - Fighting continues in Tripoli and Beirut. Cyprus - Greek Cypriots launch gen- eral strike. Ceylon - Emergency rule helps to maintain control over continuing com- munal tension. Recriminations by officials sustain Cambodian - South Vietnamese feud. 0 Thailand - Sarit concerned over dis- content in both army and party. , -f A RE-T , 4 III. THE WEST De Gaulle's nuclear policy and Ade- nauer election victory may reopen question of French- German nuclear weapons cooperation. Honduran fruit workers may strike. Approved for Release: 2020/01/23 C03169493 'Approved for Release: 2020/01/23 C03169493 tit L.LIE. I '*111110i CENTRAL INTELLIGENCE BULLETIN 8 July 1958 DAILY BRIEF I. THE COMMUNIST BLOC New Communist journal: After some delay a new inter- national Communist journal in 13 languages will begin publica- tion next month in Prague under a Soviet editor. Its predeces- sor, the Cominform journal, which ceased publication in the spring of 1956, was widely considered in Eastern Europe to be a Soviet vehicle for promulgating Kremlin directives on satel- lite affairs. The USSR is trying to still objections to the new journal within the Communist world, particularly in Poland by stressing that the new publication will be "only theoretical and informative." (Page 1) Taiwan Strait: The LAC Current Intelligence Group for the Taiwan Strait Problem, in itsjQport for the period 12 June - 7 July 1958, notes that pJotraphic and radar coverage of the East China airfieldssii1e 25 June, when as many as 48 jet fight- ers were reporte,d o have moved into Fukien Province, has re- vealed no airpraft on Liencheng airfield, or on any of the coastal airfields � Fukien and in the Swatow area. (Page 2) (Map) II. ASIA-AFRICA *Lebanon: Fighting has continued in the Tripoli area, and there has been firing, as well as explosions of a harassing nature, in Beirut. The failure of the government security forces to make a major offensive move apparently reflects army commander Shihab's desire to contain the situation until a political solution is found. TOP SECRET / L'4 A Approved for Release: 2020/01/23 C03169493 4%0 Approved for Release: 2020/01/23 C03169493 101 SLCULII )1, ( Cyprus: An island-wide general strike has been launched to protest the death of two Greek Cypriots in an open clash. with British security forces. page 3) Ceylon: Surface calm prevails in Ceylon under the governor. general's emergency rule, which has been in effect since 27 May. Tamil-Singhalese tension remains. The government can be ex- pected to cope successfully with communal extremists and trouble. some labor elements in any local disturbances, but the ability of the security forces to deal with an uprising on a national scale is open to question. (Page 4) Cambodia - South Vietnam: Bitter recriminations by top officials in Phnom Penh and Saigon block chances for any early abatement of the Cambodian - South Vietnamese feud. Govern- ment-inspired, Communist-exploited demonstrations have al- ready occurred in Phnom Penh, and Sino-Soviet bloc propaganda is supporting Cambodia's position. (Page 5) Thailand: Field Marshal Sarit since his return to Bangkok has taken steps to stabilize the political situation, but remains concerned over rumblings of discontent both in the armed forces and in the unwieldy government coalition party. (Page 6) I I L THE WEST France-Germany: De Ga9 e's strong plea for nuclear weapons and the victory of the West perman Christian Democratic party in the North Rhine - Westphalia elections on a pronuclear weapons platform may reopen tjie question of bilateral French- West Ger- man cooperation inyuclear weapons research, and, possibly, pro- duction. Adenau9r is likely to avoid any definite commitments now but may "tend some technical cooperation and financial sup- port to the French in return for an understanding on a joint modern weapons pAgram and European integration. 8 July 58 DAILY BRIEF TOP SECRET ii z Approved for Release: 2020/01/23 C03169493 Approved for Release: 2020/01/23 C03169493 I k./1 3LLIL1 II TOP SECRET \L\ *The represejitafive of the Department of State does not believe that ther6 is any connection between the North Rhine - Westphalia" elections and French-German bilateral weapons cooperation, and considers the comment at variance with Na- tiorVntelligence _Estimate 100-2. Honduras: The democratically oriented Villeda Morales administration faces the threat of a crippling strike by the 13,000 workers of the United Fruit Company. The American Embassy believes the company is following a hazardous policy In seeking participation of Communist-led or -influenced unions in contract negotiations. (Page 7) 8 July 58 � DAILY BRIEF iii Approved for Release: 2020/01/23 C03169493 Approved for Release: 2020/01/23 C03169493 CONNOLLY I 1AL L THE COMMUNIST BLOC New International Communist Monthly tq Begin Publication In August The announcement that the new international Communist monthly, Problems of Peace and Socialism, will begin pub- lication in late August indicateg that some of the problems which have delayed its establishment, particularly Polish ob- jections and bloc policy toward the Yugoslays, no longer pose a serious obstacle. The periodical, to be published in Prague, will appear in 13 languages not including Serbo- Croat. Czecho- slovak and Polish publications have indicated that its chief ed- itor will be A. M. Rumyantsev, until now chief editor of Mos- cow's Kommunist. The establishment of a new vehicle for the ideological guidance of the world's Communist parties, which was dis- cussed in satellite party newspapers during 1957, reportedly received a large measure of agreement during Moscow discus- sions in November. The decision to establish the journal was not announced until March, however. The four-month delay and the sketchiness of the announcement strongly suggested that a number of problems remained to be resolved. In 1947 Gomulka foresaw that Moscow would use the old Cominform and its publication, For a Lasting Peace, For a People's Democracy, to limit the satellite governments' con- trol of their internal affairs. Since his return to power, he is said to have opposed a new publication, fearing it would simply be a revival of the earlier one. However, for the bene- fit of Gomulka and any others who might object on these grounds, bloc media have been stressing that the new journal will be only a "theoretical and informative" publication rather than a vehicle for Kremlin directives. CONFIDENTIAL 8 July 58 CENTRAL INTELLIGENCE BULLETIN Page 1 Approved for Release: 2020/01/23 C03169493 ���� OMR �Na. Approved for Release: 2020/01/23 C03169493 AIN TAIWAN STRAIT SITUATION TANGY TATOPU NANHAI HUEHSHAN (T) ELLITE Changsha ENGYANG (T) 116 G SATEILITE Nanchan NANCHANG NEW (P) CHANGSH HSIN HENG (P SYMBOL AIRFIELDS WITH * DELINEATED RUNWAYS RUNWAY SURFACE 0 7000 feet or over (P)� Permanent * 6000 feet to 6999 feet (1) � Temporary (N)� Natural * 5000 feet to 5999 feet (VD) � Under Construction (UNK)� Unknown � 4000 feet to 4999 feet t Seaplane station 712 13 \ ci 02- 2 Pongfou NG (P) NANKING E SAT EL 120\ 122 HANG (P) HIAN Ch ANGCROW (P) HUAINING SATE1 (T) hall jao ingtan Chien Changp YIN HSI EN nhua CHAN N (P) Luch Foocho Wenchow Juts GlitIA SS GWAN(P) UNGCHIAOM SING (F) � Ill CHIA0 (P) 28_ TAOYUAN (PS)UNGSHAiN (P) � HSINCHU (P) KUNG KU kW (UC) TAICHUNG ap. PENVU- 14,000 TAINAN (P) *--1� Railroad Kaohsiung Railroad under construction TUNGKONG Selected road 10I 200 NAUTICAL MILES 100 200 STATUTE MILES STATUS OF AIR FACILITIES OPERATIONAL -- Air facilities printed in red are known or evaluated to be consistently used by military or civilian aircraft. OTHER --- Air facilities printed in black are those under construction, unserviceable, or on which the availability of information is such that the current status cannot be determined. *Delineated runways are explained as a defined or marked area on an airfield prepared or selected for landing and take-off of aircraft. 7 JULY 1958 Approved for Release: 2020/01/23 C03169493 Approved for Release: 2020/01/23 C03169493 I ocurcr, I Report No. 119 of the IAC Current Intelligence Group for The Taiwan Strait Problem Covering the Period From 12 June to 7 July 1958 1. There were no significant combat operations in the area during the period. 2. no aircraft on Liencheng airfield or on any of the coastal air- fields in Fukien and in the Swatow area. The move of Chi- nese Communist jet fighters south from Shanghai evidently did not involve any of these air bases. This flight activity may have been an air exercise or a deployment connected with airfields farther inland. 3. The level of chinese Communist naval activity con- tinued high in the East China Fleet area, and declined to moderate in the South China Fleet area. In the East, un- determined-type exercises in the Hangchow Bay area appar- ently terminated some time between 30 June and 1 July; but over-all naval activity remains high. No special significance is attached to this activity. However, the extended duration of the exercise and the over-all high naval activity indicates a decided increase in the operational capabilities of the Chi- nese Communist Navy. 4, The Chinese Communist Foreign Ministry on 2 July issued a follow-up to the 30 June government statement de- manding that the US resume the Sib-American ambassadorial talks within 15 days. Peiping did not indicate its acceptance of Secretary Dulles' suggestion that the talks be shifted from Geneva to Warsaw; at the same time, however, Peiping did not reject the proposal. Peiping has not followed up its state- ments on the talks with a concerted domestic or international ro a anda campaign on the question of Taiwan. 5. There are no signs of unusual ground force or other mil- itary activities along the Fukien coast indicative of a Chinese Communist intention to launch major military operations against the Chinese Nationalists in the near future. Current Communist strength opposite the offshore islands is sufficient, however, to permit an increase of military pressure on the Chinese Nation- alists at any time. TOP SECRET 8 July 58 CENTRAL INTELLIGENCE BULLETIN Page 2 Approved for Release: 2020/01/23 C03169493 Approved for Release: 2020/01/23 C03169493 .5 "C: IL ASIA-AFRICA Nwe Cyprus Cyprus is again the scene of murders, arson, intimida- tion, and intercommunal strife as each faction tries to outdo the other in exerting pressure on the British. Greek Cypriots on 7 July staged a general strike to protest the death of two demonstrators killed by British security forces during a brief clash with several hundred Greek Cypriots. Turkish Cypriots continue, by threats, fire, and armed attack, to force Greeks to leave Turkish sectors of Cypriot cities. They have also is- sued an ultimatum to Governor Foot threatening violence, pre- sumably against the British, if the government does not ap- prove separate municipal councils by 15 July. In the diplomatic phase of the dispute, all interested par- ties are showing more flexibility regarding the British proposals. Athens has indicated a willingness to accept the plan if both union with Greece and partition are ruled out and if the Governor's advisers are chosen by the Cypriots instead of by Greece and Turkey. The Turks continue to be adamant concerning eventual partition of Cyprus but have again called for tripartite discus- sions on the problem. The best prospect for diplomatic progress appears to be in discussions among the permanent North Atlantic Council repre- sentatives of Britain, Greece, and Turkey. Permanent represent- atives of Greece and Turkey have been recalled to Athens and Ankara for top-level discussions. In contrast to the expressed optimism of Prime Minister Macmillan regarding the diplomatic prospects, Governor Foot is discouraged by continued Greek violence, which prevents the return of Archbishop Makarios, regarded by him as essential for any real progress toward settlement of the problem. He has contacted Makarios requesting a period free of violence for ap- parently about two months. SECRET 8 July 58 CENTRAL INTELLIGENCE BULLETIN Page 3 Approved for Release: 2020/01/23 C03169493 Approved for Release: 2020/01/23 C03169493 CONFIDENTIAL w The Situation in Ceylon Communal violence over the Tamil-Singhalese national language issue, which swept Ceylon for some ten days in mid- May, subsided about five days after Governor General Goone- tilleke imposed emergency rule on 27 May, and the island is now superficially calm. Goonetilleke has extended the emer- gency for another month from 26 June and the government is apparently determined to deal harshly with all troublesome elements. Considerable tension remains, however. The governor general has the power to extend emergency rule at 30-day intervals and may retain indefinitely the firm control he apparently now personally wields. The steict cur- few and press censorship regulations,, however, have been eased gradually. The predominantly Singhalese government continues to blame the Tamil minority for the recent violence, and various cabinet ministers reportedly have pressed Bandaranaike to take a stronger anti-Tamil line. Promises by Bandaranaike and Goonetilleke to the Tamils that legislation providing for the "reasonable use" of their language would be introduced in Parliament may therefore remain mafulfilled indefinitely in view of the renewed violence any concessions to the Tamils might provoke. Bandaranaike and leading Singhalese Buddhists began discussions of such legislation on 7 July, however. The island's economy has suffered substantially through property destruction, the interruption of commertial activities and development work, and absenteeism among Tamil workers, who constitute about one third of the government service ranks. Communist-led strikes which disrupted the economy during April and May were called off on 28 May, and on 4 July rival Communist and Trotskyite unions extended a joint appeal for communal peace. Their move, however, probably reflects mainly a desire for a return to normal conditions, under which they can further their individual interests. 8 July 58 CONFIDENTIAL CENTRAL INTELLIGENCE BULLETIN Approved for Release: 2020/01/23 C03169493 Page 4 Approved for Release: 2020/01/23 C03169493 Cambodian - South Vietnamese Feud Benefiting Communists Chances of an early improvement in Cambodian - South Vietnamese relations, which became seriously strained follow- ing Phnom Penh's charges on 25 Stine of a Vietnamese "invasion," are blocked by the attitudes of top officials in both countries. Cambodian Crown Prince Sihanouk has canceled plans to visit Saigon fov negotiations, citing recent "insulting" Vietnamese press articles. Vietnamese President Diem has reiterated his conviction that Sihanouk is untrustworthy and that no good could come from a visit at this time. While the danger of military clashes between Cambodian and South Vietnamese forces over the disputed common frontier has receded, the continuing political feud between the two coun- tries is working to the advantage of the Communists. Cam- boulas complaints are being exploited by international Commu- nist propaganda as "proof that South Vietnativ,is an aggressive base prepared by the imperialists for a new war." These charges also are creating an atmosphere in Cambodia condu- cive to further Communist political inroads. Demonstrators parading in Phnom Penh recently, protesting Vietnamese ag- gression and supporting Sihanouk's return to the premiership, carried large portraits of Chou En-lai, Nasir, Nehru, and U Nu in addition to that of the crown prince. Cambodian in- stability has been further aggravated by the National Assembly's sudden overthrow of the Sim Var government last month. SECRET 8 Slily 58 CENTRAL INTELLIGENCE BULLETIN Page 5 Approved for Release: 2020/01/23 C03169493 Approved for Release: 2020/01/23 C03169493 CONFIDENTIAL Sarit Moving to Stabilize Thai Political Situation Field Marshal Sarit, who returned to Thailand last week after a five-month absence in the United States, appears to be making progress in his efforts to stabilize the Bangkok po- litical situation, which had become increasingly confused while he was out of the country. He has concentrated on buttressing the position of Premier Thanom, whose indecisiveness during Sarit's absence had encouraged sniping both by the opposition and by certain elements within the governing National Socialist party (NSP). Sarit is said to have lectured NSP members for two hours on 2 July concerning criticism of Thanom, warning them that if they wanted a strong, ruthless premier rather than Thanom, they could have one but that they would be "sorry." This was presumably a veiled threat that he would personally use strong- arm tactics if they did not fall into line voluntarily under Thanom. The Thai strong man also frustrated opposition plans for a general debate in the National Assembly by "inducing" enough independents to withdraw their signatures from a petition to invalidate it. A report that four tank companies were placed on alert status over last week end suggests that Sarit is not yet su....e the situation is under control. This precautionary show of force was probably also intended as a warning to would-be troublemakers both within Sarit's nwn ranks and in the opposi- tion. CONF119 8 July 58 CENTRAL INTELLIGENCE BULLETIN Page 6 Approved for Release: 2020/01/23 C03169493 Approved for Release: 2020/01/23 C03169493 SECRET 'gime III. THE WEST Threatened Strike May Further Weaken Hard-Pressed Honduran Government A strike by 13,000 workers of the United Fruit Company in Honduras which may begin on or shortly after 15 July would further weaken the already hard-pressed Honduran Govern- ment and might increase the capabilities of the Communist minority in organized labor. President Villeda Morales, inaugurated seven months ago after his Liberal party won a good majority in the freest election in Honduran history, is rapidly losing prestige. The Treasury is virtually empty and unable to meet payrolls with- out borrowing, yet government spending continues at a reck- less pace. The President has so far been a timid and inept executive, and his opponents are stepping up their attacks against him. Powerful army leaders are already bitterly critical of him and believe that before long they can justify seizure of the government. The United Fruit Company, which dominates the economy of the vital north coast area, is insisting that two small Com- munist-led unions join the dominant anti-Communist union in negotiations for a new labor contract to replace the one expir- ing on 15 July. The majority union, a member of the anti- Communist Inter-American Regional Organization of Workers (ORIT), adamantly refuses to sit at the same table with the Communists. ORIT and local labor leaders believe the com- pany is trying to use the Communists to break the majority union. The company, which has suffered serious setbacks in its operations in Honduras in recent years, is in no need to grant labor's wage and other demands. The leaders of the anti-Communist union, while generally reasonable and respon- sible, feel they cannot afford to back down appreciably, since such action would be exploited by the Communists, who continue their efforts to gain control of the labor movement. SECRET 8 July 58 CENTRAL INTELLIGENCE BULLETIN Page 7 Approved for Release: 2020/01/23 C03169493