CENTRAL INTELLIGENCE BULLETIN - 1958/07/30

• Document Type: SPECIALCOLLECTION
• Keywords: 2018 Sanitization
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03169508
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 13
• Document Creation Date: January 27, 2020
• Document Release Date: January 30, 2020
• Publication Date: July 30, 1958

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3.5(c) /
3.3(h)(2)
.1;
30 July 1958
Copy No. C
CENTRAL
INTELLIGENCL
BULLETIN
DOCUMENT NC). _
NO CHANGE IN CL
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CLASS. CHANGED TO: IS EA
NEXT REVIEW ATE:Al iLl.
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1 I. La A
30 JULY 1958
I. THE COMMUNIST BLOC
II. ASIA-AFRICA
Middle East - Extreme opposition
In Lebanon seeks to block election
of General Shihab to presidency;
election may again be postponed.
King Saud's power further curtailed.
Laos - Prospects for effective anti-
Communist government fading.
Pro-Communist leaders lose con-
trol of Japan's largest labor federa-
tion.
III. THE WEST
France may soon recognize new
Iraqi regime.
Haiti - Duvalier regime quashes
coup attempt; further plotting aided
by Dominican dictator Trujillo likely.
0 British Guiana - Communist Cheddi
Jagan aeeldng more funds to ensure
his dominance in colon; arrives in
Washington on 30 July.
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CENTRAL INTELLIGENCE BULLETIN
30 July 1958
DAILY BRIEF
I. THE CO I UNIST BLOC
II. ASIA-AFRICA
*Middle East: A manifesto issued on 29 July by the ex-
reme opposition in Lebanon appears to be a disguised effort
o block the election of General Shihab to the presidency on 31
uly. The scheduled parliamentary session to elect a presi-
nt may again be postponed. Jordanian Prime Minister Rifai's
eported heart attack and the return from Baghdad of Assistant
hief of Staff Shara--suspected of pro-UAR sympathies�fore-
hadow increasing difficulties for King Husayn.
The new Iraqi regime on 27 July requested additional
rts in military intelligence and civil security matters from
he UAR. King Saud's power has been fur-
er curtailed by a royal decree appointing Crown Prince Faysal
nister of finance and economy. (Page 1)
Laos: Prospects for an effective anti-Communist govern-
ment appear to be fading. Premier-designate Souvanna has of-
fered young pro-Western reformist elements minority repre-
sentation in the cabinet, but they are still insisting on a majority.
Their bargaining power is being reduced by the irresolution of
Crown Prince Savang and the army. Both had earlier threatened
to impose a strong government. (Page 5)
Japan: The pro-Communist leadership in Japan's labor
organizations has received a serious setback, with moderate
leftists gaining control of 11 of 17 seats on the executive com-
mittee of Sohyo, Japan's largest labor federation. Pro-Communist
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leaders in the important railway and teachers' unions have
also been ousted. These developments stem in part from the
Kishi government's crackdown on leftist influence in labor and
education. (Page 6)
III. THE WEST
France: A French Foreign Ministry spokesman's statement
that France might take the initiative in re-establishing diplo-
matic relations with Iraq, which were broken off as a result of
the Suez intervention, is in line with recent statements by De
Gaulle that the West must eventually come to terms with Arab
nationalism.
Haiti: The Duvalier government's success in checking an
attempted coup by former army officers on 29 July does not
remove the threat of further attempts. Opposition leaders have
long been plotting with the covert support of Dominican dictator
Trujillo, and, it is doubtful that the failure of one attempt would
discourage future moves against the Duvalier regime.
(Page 7)
British Guiana: Minister of Trade and Industry and leader
of the Communist People's Progressive party Cheddi Jagan, is
dissatisfied with the $15,400,000 loan just received from Britain.
He is seeking funds elsewhere for the economic development pro-
gram which he hopes to use to consolidate the People's Progres-
sive party's dominant position in the colony. Jagan is e � cted
In Washington on 30 July. (Page 8)
4
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30 July 58
DAILY B
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1 %AI orAwria.....' I
I. THE COMMUNIST BLOC
Ho ASIA-AFRICA
Middle East Situation
Lebanon: A manifesto issued on 29 July by the extreme
opposition appears to be a disguised effort to block the elec-
tion of General Shihab to the presidency of Lebanon on 31 July.
The statement of the National Front led by Saib Salam declared
that any presidential candidate must agree in advance to a "gen-
uine Arab policy," the withdrawal of foreign troops from the
country, Lebanese neutrality between "East and West," the divi-
sion of government offices on a strictly 50-50 basis between
Moslems and Christians, as well as the enlargement of parlia-
ment from its present 66 to 120 seats. The group threatened
to continue the rebellion until its terms were met.
This move makes it almost impossible for Shihab to accept
the nomination, since it is doubtful that he could agree to con-
ditions that would upset the traditional ratio between Christians
and Moslems in the government which reflects that existing in
the population generally. Should he agree it is very likely that
progovernment deputies would either boycott the 31 July par-
liamentary session or vote against him. Agreement would cost
Shihab a majority of Christian support within the country.
The opposition is also engaged in a campaign to discredit
the general by spreading the rumor that he had accepted a bribe
from the opposition to precipitate a coup. Loudspeakers in the
Basta Moslem quarter are blaring forth the cryptic message
"refund or act" directed at the general. In turn, the attempt
on Prime Minister Sulh's life has hardened the position of gov-
ernment supporters, who are less willing than ever to reach an
accommodation with opposition leaders.
The scheduled parliamentary session torelect a president
may again be pbstponed while further negotiations toward a com-
promise are carried out between the contending factions. Should
the impasse continue for a lengthy period, army officers might
attempt a coup to put Shihab into office.
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Jordan: Jordanian Prime Minister Rifai states that he has
had a mild heart attack and has been ordered to reduce his work
load. Uncertainty regarding the future ability of the prime min-
ister to serve and the return of Deputy Chief of Staff Sadiq Shara
from Iraq foreshadow increasing difficulties for King Husayn.
Shara, already suspected of antigovernment actions, is openly
mouthing a surprisingly pro-Iraqi Republic line. He has re-
fused to comment on the future of Jordan and has refrained
from his usual praise of Husayn. He also glossed over the
brutal slayings of the Iraqi royal family, saying that these were
"inevitable" in a revolutionary situation. His detention in Iraq
under suspicious circumstances and the fact that he had an inter-
view with Iraqi Prime Minister Qasim- on the day of the revolu-
tion lends credence to reports that Shara may be conspiring with
anti-Hashimite forces.
Ira.: Ste in up its relations with the UAR, the new Iraqi
regime requested Cairo to provide additional experts
in the fie o mi itary intelligence and civil security mattpr-7
[The Iraqi military attache in Washington is urging the Bagh-
dad government to issue reassuring statements on its future oil
olic in order to speed recognition by the United States.
recommending these steps, he also suggested that
assa or Murphy, should he visit Baghdad, be given further
assurances which "are necessary at this time.
4jvc, /The German, Japanese, and Belgian ambassadors in Bagh-
i dad are urging their governments to recognize the Iraqi Republic
immediately withotit waiting for Great Britain and the US
_ Turkey,
Iran, and Pakistan agreed to recognize the republic on 31 July.
The UK intends to do likewise on 1 August.
The Baghdad government has made several moves to in-
crease its popularity with the populace --such as shortening
working hours and lowering the price of bread and gasoline.
30 July 58
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losore
United Arab Republic: A number of Egyptians known to
have been pro-American in the past have recently become
highly critical of the United States and have stated that a
"State Department document" recently published in the Cairo
press clearly shows that the US is against Arab nationalism
and its leader President Nasir and that it favors Israel. One
pro-US government official stated that this disclosure has
rought US prestige to the lowest point ever.
Nasir is reported to have asked Lebanese industrialist
Emile Bustani to sound out foreign oil companies to see if
they are willing to meet on the invitation of the Suez Canal
Authority to discuss the construction of an oil pipeline paral-
lel to the canal. Otherwise Nasir fears that the oil will go by
supertanker around the Cape of Good Hope.
Saudi Arabia: A royal decree o 29 July further circum-
scribes King Saud's few remaining powers by effectively cur-
tailing his influence over the country's finances. The decree
gives Crown Prince Faysal, who is already prime minister
and foreign minister, the additional post of minister of finance
and economy. This move culminates months of effort by Faysal
and Egyptian adviser Zaki Saad to remove former Finance Min-
ister Muhammad Surur who had readily acquiesced to King
Saud's repeated demands for funds despite aysal's disapproval.
Abdullah Bin Adwan, who had been acting finance minister
and responsive to Crown Prince Faysal, has been appointed
minister of state for financial and national economic affairs
and will apparently carry out the technical administration of
Faysal's new position.
ARAMCO operations in the Eastern province may face labor
roubles. One suspected Communist agitator who was associated
ith the 1953 strike and 1956 demonstrations against ARAMCO has
beca ilLtnfo_fJf.A Sore Sai.w.(iyk:ars evi
dently anticipated trouble around 20 July; they refused ordinary
overtime work and stated they were "going home to Hofuf," a term
for seeking the shelter of their own homes wen trouble is brewing.
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Kuwait: In a move to curry favor with the UAR7 Kuwait's
education minister on 29 July announced that his country would
increase the number of Egyptian school teachers in Kuwait from
400 to 500. School teachers probably are Nasir's most effective
subversive agents for undermining Arabgo
ing hatred of the West,
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Proposed Laotian Government Weak
Premier-designate Souvanna Phouma appears determined
to frustrate the drive for an effective anti-Communist govern-
ment in Laos dominated by young civil and military leaders.
In a superficial accommodation to reformist pressure he has
offered young leaders five seats in a 14-man cabinet. The
American ambassador describes the proposed slates as "woe-
fully weak."
The "young turks"--organized in the Committee for the
Defense of the National Interests�have rejected Souvarma's
offer and are threatening a coup unless they receive a major-
ity of cabinet posts. However, the committee's demands have
lost some force as a result of irresolution on the part of the
crown and army who had earlier threatened to impose a gov-
ernment. It is apparent now that General Ouane, army chief
of staff and committee member, is subservient to Souvanna.
In Vientiane, both the police and the army are on alert
status, and it is possible that top army leaders identified with
the committee could bypass Ouane and gain control of the army.
In that event, Souvanna would probably reassess his position
and accede to committee demands for majority representation.
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Pro-Communists in Japanese Labor Suffer Major Setback
The pro-Communist leadership in Japan's labor organiza-
tions has received a serious setback, with moderate leftists
gaining control of 11 of 17 seats on the executive committee of
Sohyo, Japan's largest labor federation. Pro-Communist lead-
ers in the important railway and teachers' unions have also
been ousted. These developments stem in part from the Kishi
government's crackdown on leftist influence in labor and edu-
cation.
The national railway workers' and the teachers' unions,
the backbone of the Sohyo federation with a combined member-
ship of 900,000, replaced pro-Communists with moderate left-
ists during their, conventions this month, probably hoping to
escape further government pressures. The government had re-
fused to bargain collectively with the railway union until union
officials responsible for illegal strikes last year were dropped.
The government also has instituted a standardized teacher-
rating system, as well as other measures, throughout the pub-
lic schools in order to weaken pro-Communist control of the
teachers' union and its influence on some 20,000,000 school
children.
During the Sohyo convention, which ended on 25 July, mod-
erates gained 11 of 17 seats on the standing executive committee
and won all major offices except two of five vice presidencies
which went to extremists.
The success of the government crackdown thus far may en-
courage moves against leftists in other organizations. An ulti-
mate aim of the program probably is to weaken the support which
the Socialist party derives from Sohyo and a majority of youth-
ful voters.
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III. THE WEST
Coup Attempt Against Haitian Government Fails
The failure of a small group of former Haitian Army
officers, apparently supporters of former President Paul E.
Magloire, to effect a coup against the Duvalier regime on
29 July does not remove the threat of further such attempts.
There have been constant reports of plotting against Duvalier
since he took office eight months ago, and details of a plot by
opposition leaders, including former Presidents loire and
Daniel Fignole and defeated presidential candidate Louis Dejoie,
with the covert support of Dominican dictator Trujillo, have
been reported frequently during recent months. The unsuccess-
ful attempt on 29 July may have been related to the Trujillo-
backed plan.
Duvalier has lost popularity through his brutal repression
of opposition groups, his creation of a terroristic secret police,
his purges of army officers whose loyalty he doubted, and his
apparent inability to deal effectively with Haiti's serious eco-
nomic and social problems. Extreme poverty and the resurgence
of the race issue, exacerbated by Duvalier's harsh treatment of
the mulatto elite, have kept tension high, and any indication of
serious political instability could trigger a complete breakdown
of public order.
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Communist Minister From British Guiana Seeking Funds in US
British Guiana's Minister of Trade and Industry and leader
of the Communist People's Progressive party Cheddi Jagan is
dissatisfied with the $15,400,000 loan just received from Britain.
He is seeking funds elsewhere for the economic development
program with which he hopes to consolidate the dominant posi-
tion of the People's Progressive party (PPP) in the colony.
Jagan is expected in Washington on 30 July. He may ask for
a private American economic adviser and try to promote a
loan from the International Bank of Reconstruction and Devel-
opment for transportation needs in the colony.
The PPP has been able to effect only slight economic prog-
ress since its electoral victory of August 1957, and Jagan was
seeking a much larger loan and greater autonomy in order to
quell growing criticism.
During his London visit, Jagan may have renewed con-
tacts with bloc representatives and British leftists,
Ile has so far received propaganda ma-
terial from foreign Communist sources but no substantial fi-
nancial assistance. Since the elections, he and his wife, Janet,
the minister of labor, health, and housing, have increasingly
installed Communists in influential party posts and distributed
Communist literature.
While still in control of the PPP, Jagan is facing increas-
ing opposition on a personal basis, and he may feel constrained
to abandon the cooperative attitude toward the British authorities
he has displayed thus far as the effective leader of the colony's
government.
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