CENTRAL INTELLIGENCE BULLETIN - 1958/07/19

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03169501
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 21
• Document Creation Date: January 27, 2020
• Document Release Date: January 30, 2020
• Publication Date: July 19, 1958

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19 July 1958
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CENTRAL
INTELLIGENCE
BULLETIN
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19 JULY 1958
I. THE COMMUNIST BLOC
Moscow and Peiping continue dip-
lomatic and propaganda campaign
against Western intervention in
Middle East.
II. ASIA-AFRICA
Attitude of Lebanese army toward
US forces remains equivocal. Heavy
security precautions in effect in
Jordan. UAR continues to prepare
for possible hostilities.
Special IAC Watch Committee Re-
port on the Middle East situation.
Nehru may offer to mediate in Mid-
Me East.
Free-Aworld reactions to Middle East
events.
Algerian FLN protests to Tunisia
over oil pipeline agreement with
French company
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III. THE WEST
0 Austrian chancellor accedes to So-
viet demand not to attend US Em-
bassy functions while in Moscow.
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CENTRAL INTELLIGENCE BULLETIN
19 July 1958
DAILY BRIEF
I. THE COMMUNIST BLOC
*USSR - Middle East: The USSR is concentrating on its
campaign to make the maximum possible political capital
from Western actions in the Middle East, Using Unofficial
diplomatic hints and plants in foreign capitals, Moscow has
begun suggesting such possible counteractions :as the injec-
tion of bloc volunteers into the Middle East in the event West-
ern intervention is extended to Iraq or even if the American
and British actions in Lebanon and Jordan continue. At the
same time the USSR apparently intends to keep up demonstra-
tions against American and British diplomatic installations
and military missions in bloc countries. At present, these
seem to be increasing in size and boldness. In addition Mos-
cow has issued another cautiously worded government state-
ment declaring that "the Soviet Union will not rest indifferent
...and will be compelled to take the necessary steps dictated
by the interests of the Soviet Union's security!' Closer So-
viet collaboration with Egypt will probably result from the
lihrushchev-Nasir talks in Moscow on 18 July. The Soviet
Union has already recognized the new Iraqi regime, which
In turn has emphasized a desire for "the further develop-
ment" of close relations.
Communist China: The Chinese Communist foreign min-
ister has implied to Asian diplomats that the bloc will not
intervene directly in the Middle East as long as Western in-
tervention is confined to Lebanon and Jordan. He states, how-
ever, that a Western move against Iraq might very well start
a conflagration "which could extend to China." Similar pro-
nouncements on the possibility of a world war have been issued
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to the press. Peiping, like Moscow, seems confident that the
Western action in Lebanon and Jordan is vulnerable to diplo-
matic and propaganda counterattack. The immediate Sino-So-
viet objective appears,to be to keep Western intervention lim-
ited and contained. (Page 1)
II. ASIA-AFRICA
*Middle East: The attitude of the Lebanese Army toward
the American forces remains equivocal. The rebels may
launch terrorist attacks on the Americans in the near future.
The UAR has stepped up preparations for a possible outbreak
of hostilities, and Nasir has reiterated promises of military
assistance to the new Iraqi regime. Heavy security precau-
tions remain in force in Jordan; there have been no hostile
manifestations against the British troops landing there, but
government circles hope Americans will join them so as not
to give the intervention the stigma of a return to British con-
trol. Individual reservists have been called up in Israel, prob-
ably for mobilization planning. Security problems in Saudi
Arabia, Kuwait, Libya, and the Sudan appear to be increas-
ing. (Page 2)
Special Watch Report 415-A of the Intelligence Advis*y
Committee (Issued at 1830 EDT, 18 July 1958):
Based on an examination of circumstances relating to
the Middle East situation, the Watch Committee of the Interngence Advisory Committee concludes that:
A. No Sino-Soviet bloc country intends to initiate hostilities
against the continental:US:arils possessions in the immediate.luture.
r
A
NOTE: It is not believed that the USSR would intentionally resort
to general warto expandorpreserve its recent gains in the
Middle East. It cannot be assumed, however, that the
Kremlin will avoid all risk of war, and a Soviet mis-
calculation of the risks remains a possibi
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B. No Sino-Soviet bloc country intends deliberately to
initiate direct military action against US forces abroad, US
allies, or areas peripheral to the Orbit in the immediate fu-
ture.
NOTE: There are indications of measures to increase the
readiness of Soviet forces adjacent to the Middle
East.
Announced maneuvers in Bulgaria, the Black Sea,
and in the Transcaucasus and Turkestan Military
Districts will have the effect of improving the com-
bat readiness of Soviet forces in the area.
The maneuvers are also certainly intended to intim-
idate the West and its allies, particularly Turkey,
to back up vigorous Soviet bloc diplomatic, propa-
ganda, and "popular" demands for the withdrawal
of US and UK forces from Lebanon and Jordan and
to support strong Soviet declarations to restrain
Western and Turkish interference with the new Iraqi
regime.
C. Although critical tensions exist at a number of points
in the Middle East, a deliberate initiation of open hostilities
is unlikely in the immediate future.
NOTE: The arrival of UK troops in Jordan has, at least tern-
,porarilyi, restored some Stability to the Jordanian- re-
gime and has put off the prospect of an Israeli occupa-
tion of the West Bank.
US forces in Lebanon are confronted with an increas-
ing likelihood of clashes with Lebanese forces, rebel
and Lebanese Army, and possibly also Syrian fedayeen,
Turkey has demonstrated an increasing eagerness -to
intervene in Iraq and has vigorously sought US support
for such a move. While a unilateral Turkish move
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against Iraq is unlikely, the possibility cannot be
dismissed.
The Soviet Union, for its part, has re-established
relations with Iraq and has acted to protect the new
regime by strong and explicit warnings against TUrk-
ish or Western interference.
Collaboration between the UAR and the USSR has been
intensified with Nasjsir'S visit to Moscow and military
consultations between Air Marshal Rudenko and gyp-
tian Commander in Chief Amgr.
Nehru - Middle East: Indian Prime Minister Nehru
may be prompted to ad-
vance plans for international negotiations on the Middle East
in an effort to play a mediatory role similar to the one he
played in the Suez and Korean crises. New Delhi on 18 July
stated officially that US troops should be withdrawn from Leb-
anon and suggested the possibility of strengthening the UN ob-
servation team. (Page 8)
Free-NOrldit`eattions: The dispatch of British troops to
Jordan has brought reactions generally similar to those fol-
lowing the US action in Lebanon. India and Japan oppose any
intervention in the Middle East. Several NATO members,
led by West Germany, have expressed their concern over de-
velopments which may result from the interventions. Many
Latin American governments have supported the US move.
(SECRET) (Page 9)
North Africa: The Algerian National Liberation ,F-ont
(FLN) has protested to President Bourguiba the agreement
recently concluded with a French company to transport Sa-
haran oil by pipeline through Tunisia. The FLN fears France
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succeed in disrupting North African solidarity by such
economic arrangements. (Page 11)
III. THE WEST
Austria: Chancellor Raab's decision to accede to Soviet
demands to attend no US Embassy functions during his 21=27
July visit to Moscow probably reflects Austrian desires not
to jeopardize the prospects of obtaining economic concessions
from the USSR. Vienna's complaints that American overflights
to the Middle East had violated Austrian air space further em-
phasized Austria's position of formal neutrality.
(Page 13)
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I. THE COMMUNIST BLOC
Peiping's View of Middle East Situation
Peiping has joined Moscow in efforts to limit the scope
of Western intervention in the Middle East while working
hard to mobilize world opinion against the Western action.
Communist China's Foreign Minister Chen Yil prior to a
parailel public statement of Peiping's position, on 17 July
called in heads of missions from Afghanistan, Burma, Cey-
lon, Indonesia, India, Cambodia, and the UAR to urge that
their governments grant immediate recognition to the new
republic of Iraq and "unite to stop the conflict from spread-
ing." (The UAR had already recognized the new regime.)
Chen implied that the bloc will not intervene directly
against American and British forces in Lebanon and Jordan,
but he warned that a Western move against Iraq would cause
a conflagration that "might very well extend to China." Chen's
statement is similar to private warnings made recently by
some Soviet officials who have said .that the USSR would
contest any intervention against Iraq.
Peiping's public statements, like Moscow's, reflect
growing confidence that the Western action in the Middle
East is vulnerable to diplomatic arnd propaganda counter-
attack.
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II. ASIA-AFRICA
The Middle East (information as of 0100 EDT 19 July)
The attitude of the Lebanese Army toward the Ameri-
can forces remains equivoc'al. All the points previously
occupied by the Lebanese Army facing the American posi-
tion at Ithalde airport had been vacated by 18 July, but the
units withdrawn may have taken up other, 'less prominent
positions. The army is also reported to have withdrawn its
garrison from a strategic town in the Shuf region southeast
of Beirut, whereupon the town, was occupied by Kamil Jum-
blatt's rebel Druze forces. General Shihab has reiterated
his fear that he cannot hold his army together, and has stated
there is an undercurrent of defection in the army which could
break out at Any time.
On the rebel side, the mo-
rale of opposition fighters in the Moslem Basta quarter of
Beirut is high and that a number of soldiers have joined their
ranks. The rebels in the capital are said to be planning to
take the "offensive" in some places and to shift their empha-
sis to the use of terrorist methods. Actually, a tactical shift
of this kind in rebel operations was apparent before the Amer-
ican landings. As the rebels reassess their position, an in-
creasing number of incidents involving American troops can
be expected.
rebel leaders�Saeb Salam had not yet "or-
dered" the "people's resistance" to engage the American troops
"because up till now these have been stationed near the people's
resistance areas."
UAR President Nasir's surprise flight from Moscow to
Damascus was made in a TU-104 via Baghdad, according to
communications intelligence. Nasir's stop in Baghdad was
very brief and it is doubtful he had much if any contact with
the new Iraqi leaders. His speech after his arrival in Da-
mascus did not allude to his visit to the Soviet capital, but
played emotionally on the standard themes of radical Arab
nationalism. Nasir underlined, however, his government's
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. .
Nor,
previous statements that it would come militarily to the aid
of the revolutionary regime in Iraq.
UAR preparations against the possibility of hostilities
are continuing. The port of Alexandria will be closed from
sundown to 0800 hours until further notice, and 100 contact
mines were sent there.
plans are again being made to use sabotage to
deny use of the Suez Canal to the West, and a ship loaded with
cement is already in position.
A similar state of alert, possibly of mobilization, is being
maintained in the Syrian region of the UAR. Troops have been
restricted to barracks in Aleppo, an undetermined number of
reserves mobilizediweapons issued to the Popular Resistance
Organization (PRO), and civil defense is being organized. In
Damascus, the PRO was called to arms on 17 July by sound
truck, and the civil defense office has called for volunteers/
particularly requesting medical students to report by 19 July.
No leaves will be granted civil servants until further notice.
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*me
The American Embassy in Amman reports that few Jor-
danians outside the cabinet were happy over the landing of
British troops there, but there were no signs of outward
hostility. Approximately 2,000 troops of the 16th Independent
Parachute Brigade Group have been airlifted from Cyprus to
Amman. The 1st Guards Brigade (2,500) on Cyprus is on
"immediate alert" to reinforce the paratroopers or to be air-
lifted to Kuwait or Other Persian Gulf areas if needed. A
squadron of 16 Royal Air Force Hunter jet fighters from Cy-
prus has been ordered to Beirut and another one is alerted
to move. Two replacement squadrons are due in Cyprus from
Britain.
Prime Minister Rifai continues to believe it extremely
important that American troops join the British in Jordan,
since a unilateral British effort will appear to be merely
turning the clock back to the period of British control. The
demonstration of American jet aircraft over Jordan was mis-
taken by many, including Rifai, as a flight of Syrian MIG's.
Rifai has asked that the jets return and fly lower.
Tight security is being maintained both in Amman and
in Wet Jordan, but several sources emphasize the possi-
bility of trouble in the West Jordan town of Nablus, a hotbed
of nationalist agitation. Members of the Jordan Baath party
at another town in this area have been instructed to remain
on the alert to join in a possible revolt.
King Husayn meanwhile is still talking of an invasion of
Iraq, although his army has been unable to contact any ;Iraqi
units which would join. Husayn nevertheless apparently be-
lieves a coordinated movement by Turkey, Iran, and Jordan
could be militarily successful, and he is reported to have said
he would like to move as soon as possible.
There has been little change in the situation in Iraq.
Persons arriving in Baghdad from the northern oil regions
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around Kirkuk and Mosul report that the rebel take-over there
proceeded smoothly. The regime has issued an official
statement declaring its "anxiety" to see the production and
flow of oil continued and stating that it has taken "all neces-
sary steps to protect the oil wells, pumping stations, pipe-
lines, and all other installations." The statement asserts
that the regime "respects its commitments with the parties
concerned." It will at the same time "work for the preser:.
vation of its sublime national interest, and hopes that those
concerned will respond...."
The American Embassy has been informed that the re-
gime has agreed to allow one commercial aircraft per day
to arrive and depart from the Baghdad civil airport between
0500 and 0800 to evacuate American citizens, provided the
regime receives 24 hours' notice of the arrival.
the hills overlooking
Habbaniya airfield, Iraq's major military field, have been
occupied by the First Brigade of the Iraqi Army First Divi-
sion, which apparently has positioned guns on the summits.
some mem-
bers of the former Iraqi government may be trying to escape
from the country to eastern Jordan through the good offices
of Shammar tribal leaders, Syrian police have been instructed
to arrest them if they should be found.
Israeli military authorities remain on the alert, and in-
dividual reservists have been recalled to active duty, prob-
ably to assist planning and preparation for general mobilization
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if such a measure should be required. No significant in-
crease in Israeli military ground strength has been report-
ed. An unusually large number of cargo ships has gathered
at the port of Haifa. While these vessels are believed to be
seeking haven as a result of military activity in the eastern
Mediterranean, their arrival may also be indicative of an in-
flux of military equipment to Israel, probably from France.
Israel now has on hand 20
French Vautour jet fighter-bombers, an increment of five over
the previously accepted figure. Press sources state that Is-
raeli requests for additional armaments are en route to West-
ern European capitals and to the United States,
Continuing Saudi Arabian concern for internal security
is indicated by a report that all army and royal guard train-
ing has been suspended by Crown Prince Faysars order, and
the arms have been secured under guard of trusted officers.
There is no confirmation of reports that the Saudi Govern-
ment has refused permission for American tanker planes to
overfly its territory from Bahrein to Jordan. Radio Mecca
has, however, denied officially a report that Saudi Arabia
had given such permission. Faysal in talks with American
officials has emphasized that his government is pursuing a
policy of complete neutrality in relation to events in the area.
This policy statement is in marked contratt to those of King
Saud, who has frantically urged that pro-Western forces take
action against the regime in Iraq.
Yemeni reaction to the Iraqi coup is mixed. Crown
Prince Badr persuaded the Imam to send a telegram of con-
gratualtioMto Baghdad, but conservatives in the palace are
said to be disconsolate in the belief that a chain reaction will
sooner or later hit Yemen. The Imam has postponed his pro-
posed trip to Italy.
Concern continues to be expressed about a possible up-
heaval in Kuwait, the Middle East's largest oil producer. The
ineptitude of the present , regime and the presence of nation-
alist agitators with energy and intelligence, make Kuwait vu).-
nernable to subversion. The American Consulate has obtained
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security protection for all American-occupied buildings, and
the British acting political agent has been authorized by Lon-
don to call for British troops in the event of disturbances be-
yond the competence of the local security forces.
A hand grenade was thrown over the wall of the Ameri-
can ambassador's residence in Tripoli, Libya, on 18 July,
without injuring anyone. This attack may be symptomatic
of trouble coming up in Libya, where Egyptian agents have
been reported planning a coup against King Idriss' govern-
ment, the developments
in Iraq and the subsequent impact may have thrown the plans
of dissident elements off schedule; one report has asserted
these plans envisaged action in September.
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Nehru Considers Mediation Attempt in Middle East
The Indian leader may propose. negotiations as he did dur-
ing the Suez crisis.
The Indian Government officially stated on 18 July that
US troops should be withdrawn from Lebanon. Its reitera-
tion of New Delhi's established position "against interven-
tion by foreign forces in any country" suggests the state-
ment applies to British troops in Jordan as well. Contend-
ing that the presence of Indian UNobservers in Lebanon
would safeguard the Beirut government against infiltration
across the frontiers, the statement added that the presence
of US troops "is therefore not necessary." New Delhi sug-
gested the UN observation group might be strengthened.
Since Nehru was met in New Delhi on his return from
a provincial tour by both the Soviet and UAR envoys, who
reportedly delivered messages from their leaders, the ap-
peal to Nehru may have been coordinated during Nasir's
visit to Moscow on 17 July.
In contrast to the vehement reaction by the Indian press
to American intervention in Lebanon, Nehru has so far re-
frained from strongly denouncing the action. In 1956 he im-
mediately attacked the Anglo-French intervention in Suez.
He can be expected, however, to support Nasir's position
as far as it is consistent with the general position 'of the
Asian-African bloc.
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Free World Reactions to Events in the Middle East
The dispatch of British troops to Jordan has brought re-
actions generally similar to those following the American in-
tervention in Lebanon. Several NATO members, led by West
Germany, have expressed concern over developments which
may result from these steps. Latin American governments
generally support the US landings in Lebanon. India and Ja-
pan, following the British move into Jordan, continue their
opposition to any outside intervention. North African nations
are still more concerned with domestic problems than with
the Middle East.
Western Europe: In the North Atlantic Council on 17 July,
several members expressed concern about Britain's action in
Jordan, just as they had the previous day regarding the US
landing in Lebanon. While the British step was endorsed by
Turkey, Canada, Belgium, the Netherlandsjand Luxembourg,
the West German representative criticized the lack of prior
consultation. Along with the Norwegian, Greek, Italian, and
Belgian representatives, he expressed uneasiness over the fu-
ture implications of the American and British actions for
NATO members.
Latin America: Many Latin American governments have
expressed approval of the US action. Chile has voiced its full
support publicly, and private statements of support have come
from Brazil, Uruguay, Nicaragua, and the Dominican Re-
public. Argentina, Bolivia, and Peru have privately expressed
their sympathetic understanding. In Buenos Aires, however,
on the night on 16 July, a mob of some 200-300 persontenta-
tively identified as Communists and sympathizers, attacked
heJ1Shancery and inflicted small property damage.
The Brazilian Foreign Ministry instructed its UN dele-
gatioFto conform to the US position, but advised it could not
agree to a transfer of the Brazilian battalion at Suez to another
area until authorized by Congress, which is in recess during
July.
South and Southeast Asia: Some elements of the Indian
press, possibly taking their cue from Nehru's continuing cautious
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reaction to events, have played a more moderate line than
had appeared in the first comments. Most of the press can
be expected to support Nehru's call on 18 July for the with-
drawal of US troops from Lebanon and the strengthening of
UN forces if necessary. The populace throughout South
Asia has reacted much less violently to recent events than
to the British and French invasion of the Suez area in 1956.
President Diem of South Vietnam strongly endorses Ameri-
can and British actions. The government of Malaya has is-
sued a statement implying criticism of the United States and
Britain but not naming either. Malayan Government leaders
are apparently under some pressure to criticize Western in-
tervention because of the feeling of religious identity the Ma-
layan Moslems have for the Lebanese rebels.
Far East: Chinese Nationalist military forces have been
placed on a special alert and daylight air patrols are being
made along the mainland coast. Such action presumably is
intended to detect any possible Communist action in the Tai-
wan Strait designed to take advantage of the. Middle East cri-
sis. Governmentaficials continue to declare full support for
American action in Lebanon.
South Korea on 17 July called on all free world nations
to support the United States both diplomatically and militarily
in its action to defend Lebanon.
Japanese Foreign Minister Fujiyama states that the land-
ing of British forces in Jordan, like the American troop ar-
rivals in Lebanon, will only aggravate the tense situation in the
Middle East. Government officials are unanimously agreed
that the US decision to land troops in Lebanon was a mistake
and that Japan must avoid endorsing it outright. The Japanese
press continues its strong criticism of foreign involvement in
the Middle East, expressing fear that the US and UK actions,
by inflaming Arab nationalism, may jeopardize Japan's achiev-
in a lace of leadership in the Afro-Asian group.
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Algerian Rebels Oppose Tunisian Pipeline Concession
Opposition of the Algerian National Liberation Front
(FLN) to the concession recently granted to a French com-
pany for the construction of a trans-Tunisian pipeline may
create new difficulties for Tunisian President Bourguiba.
The Algerian rebels insist they will oppose the exploitation
of Algerian petroleum until independence is achieved.
The FLN's executive committee�presently in Cairo--
on 13 July addressed a protest against the concession to
Bourguiba, with copies of the communication to Morocce
and Libya. The following day the committee instructed
the FLN representative in Tunis to take up again the ques-
tion of oil and the pipeline in an editorial in the FLN's
weekly newspaper El MaJujahid, "especially in the Arabic
edition." That paper on 4 July con-
demned negctiations- for a pipeline concession, charging
that to negotiate for transportation of the petroleum is to
recognize French claims to the Sahara and to compromise
the fight of the Algerian people. FLN leaders have feared
that with an improvement in France's North African rela-
tions France might succeed in driving a wedge between
Morocco and Tunisia and the Algerian nationalists, there-
by disrupting North African solidarity. France's policy,
is to split
tne LN iron.). Tunisia and Morocco, and the hard-line Al-
gerian rebel military leaders from political leaders.
Bourguiba and the Tunisian Government have for some
time feared the subversive capabilities in Tunisia of the
several thousand Algerian rebels, who may outnumber
Tunisian security forces and are believed far better equipped
than the Tunisians. Nevertheless, they have sought the con-
cession, which they hope will materially improve depressed
economic conditions in the south. The Tunisian foreign sec-
retary said on 16 July that his government had attempted in
vain to explain to FLN leaders the reasons--including national
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self -interest--for granting the concession. The independent
French-language weekly L!Action published in Tunis--a paper
strongly influenced by the FLN--has backed the government's
decision and expressed astonishment that anyone should oppose
the concession.
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THE WEST
Austria Concerned for Neutrality in Present Crisis
Austria's Chancellor Raab has decided to conform to of-
ficially stated Soviet wishes and avoid any functions at the US
Embassy during his 21-27 July visit to Moscow. Foreign Min-
ister Figl had previously assured Ambassador Matthews in
Vienna of Austria's indignation at the "presumption" of the So-
viet Government in making such a request, and the Austrian
delegation had accepted a luncheon invitation for 27 july from
Ambassador Thompson in Moscow. In view of the present Mid-
dle East crisis and American overflights of Austrian territory,
which have occasioned public excitement but no formal protest
from the Austrian Government, Raab is apparently eager to ap-
pease the USSR and avoid jeopardizing his prospects for ob-
taining economic concessions during his visit. According to
Figl, however, there could hardly have been a worse time for
the Moscow trip, and Ambassador Matthews has expressed
considerable doubt whether Raab can withstand Soviet threats
or blandishments.
Vice Chancellor Pittermann, a member of the Austrian
Socialist party, which dislikes and distrusts Raab, has ex-
pressed a desire for an informal meeting with Ambassador
Thompson, who was previously stationed in Vienna, before
the Austrian delegation leaves Moscow. He has suggested
meeting the ambassador at a Protestant church service in
Moscow so as not to give the Russians any overt indication of
a difference of views in the delegation.
19 July 58 CENTRAL INTELLIGENCE BULLETIN Page 13
Approved for Release: 2020/01/23 C03169501