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July 21, 1958
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14.1.1 Z'/ZZ/ZZZ/ZZ/Z/ZZZ 1,7,/ Approved for Release: 2020/01/23 CO3172427 0 -T-0-13-SteRET- 3.5(c) 3.3(h)(2) NNW LI) 21 July 1958 Copy No. 57 CENTRAL INTELLIGENCE BULLETIN 4 DOCUMENT NO. NO CHANGE IN CLASS. I I r)FGLASSIFIED CA. CHANGED TO: Toiloobi NEXT REVIEW DATE. CDAVOI OW- REVIEWER _ -TOP-SECRET Approved for Release: 2020/01/23 C03172427 Approved for Release: 2020/01/23 C03172427 TOP SECRET Approved for Release: 2020/01/23 C03172427 � Approved for Release: 2020/01/23 C03172427 21 JULY 1958 L THE COMMUNIST BLOC Ehrushchev's call for summit meeting continues Soviet campaign to contain Western intervention. General increase in Soviet military communications activity noted on 18-23 July. Soviet diplomats in Balkan ca itals re- turn to Moscow. East German regime organizing demon- strations in connection with Adenauer's Berlin visit this week. II. ASIA-AFRICA Lebanese4rmy commander still hoping to obtain withdrawal of US troops. Prep- arations continue for Syrian-supported revolt against Jordanian Government. Freerorld comment on US policies and'IOirushchev's summit proposal. \ \ - 0 Cambodia agrees to give diplomatic recognition to Communist China. TOP SECRET Approved for Release: 2020/01/23 C03172427 � ' Approved for Release: 2020/01/23 CO3172427 z 277 0A CENTRAL INTELLIGENCE BULLETIN 21 July 1958 DAILY BRIEF I. THE COMMUNIST BLOC Soviet political moves: Khrushchev's call for a summit meeting on 22 July is part of the continuing Sino-Soviet dip- lomatic and propaganda effort to contain and ultimately elim- inate the Anglo-American forces in the Middle East. The Kremlin appears confident that the Western intervention can be effectively exploited to strengthen the forces of Arab na- tionalism and Arab antagonism to the West and draw the UAR and the new Iraqi regime into closer alignment with and de- pendence on the Sino-Soviet bloc. Page 1) Soviet military reaction to Middle East developments: A general increase in Soviet military activity developed Much of this reflected a spate of maneuvers by Soviet and other Communist military forces along most of the bloc perimeter from Norway to the Soviet Far East. The increase is particularly evident in the advertised maneuver areas--Bulgaria, Black Sea, Transcaucasus and Turkestan. In each of these, except Bulgaria, the activity appears to be exercises and defensive readiness measures and nothing more. An exceptional number of Soviet transport aircraft have flown into Bulgaria together with one tactical air division which has light bomber units trained and equipped for special weapons work. This movement probably is intended to intimidate Turkey and the West and forestall any Middle East actions by Ankara. The number of transports involved represents a logistic or airlift capability beyond that believed necessary for participation in the exercises. TOP SECRET , Approved for Release: 2020/01/23 C03172427 ## # Approved for Release: 2026701/23 C03172427 %ftif ffd/M%,4W Some Soviet forces elsewhere also have been executing defensive readiness measures, the most notable being a move out to sea by some Northern Fleet submarines. On the other hand, Long Range Air Force activity has been normal, Soviet diplomats return to Moscow: Soviet aircraft ac- tivity on i9 July suggests that Soviet ambassadors from Bel- grade, Budapest)and Bucharest may have gone to Moscow. These diplomats, two of whom are candidate members of the party central committee, would probably be returning to dis- cuss the Middle East crisis, perhaps even at the central com- mittee level. (Page 3) East Germany: The East German regime issued instruc- tions on 19 July to local party organizations to organize mass demonstrations, especially along the sector border between East and West Berlin, in conjunction with the scheduled three- ph day visit to Berlin of West German Chancellor Adenauer. The chancellor was to arrive on 20 July for the 14th anniversary celebration of the attempt on Hitler's life. Demonstrations ap- parently are also ta be carried out in the East German areas surrounding West Berlin. Loudspeakers are to be set up along the West Berlin border so that the planned events and speeches are heard in West Berlin. IL ASIA-AFRICA *Middle East situatiott (Information as of 0100 EDT, 21 July): Lebanese Army commander General Shihab apparently is stall- ing actioif against the rebels in the hope of obtaining the with- drawal of American troops. He has urged rebel leaders and disaffected Lebanese Army officers in Tripoli to defer a planned revolt against the government until 24-26 July. In Jordan, there 21 July 58 DAILY BRIEF ii TOP SECRET Approved for Release: 2020/01/23 C03172427 'Approved for Release: 2020/01/23 C03172427 Nr�re are indications that preparations for the Syrian-supported revolt originally scheduled for 17 July are being carried out. The new government of Iraq is taking steps to reinforce troops at H-3 pum7ing station and at Habbaniya. The ruler of Kuwait met twice with President Nasir and other UAR leaders in Damascus on 20 July. (Page 4) *Free-y(o'rld reactions to Middle East crisis: Prime Min- ister Nehru in "gratefully" accepting Khrushchev's invitation to a summit meeting stated that India would welcome negotia- tions "through the United Nations or otherwise." French and British official reaction is chilly, however, and Japanese For- eign Ministry officials consider the proposal untimely in view of Japan's draft resolution before the UN $ecurity Council. British Labor party leaders and Swedish Prime Minister Er- lander have urged acceptance. :Page 6) Cambodia: Cambodian Premier Sihanouk's decision to ac- cord diplomatic recognition to Communist China is slated to be announced within the next few days. This development, which will enhance Peiping's status throughout Southeast Asia, particu- larly among the influential Overseas Chinese communities, will have far-reaching consequences on Cambodia's domestic and foreign affairs. Despite strong fears among other Cambodian leaders that this step will aggravate Communist subversion and endanger American aid, Sihanouk apparently is confident he can safely play both ends against the middle. (Page 9) 21 July 58 DAILY BRIEF iii #f Approved for Release: 2020/01/23 C03172427 Approved for Release: 2020/01/23 C03172427 1 fl. Nape 'ease I. THE COMMUNIST BLOC Soviet Proposal for Summit Conference Khrushchev's proposal for a summit conference on 22 July to take measures to end the "military conflict which has started in the Middle East" reflects the Soviet convic- tion that the Anglo-American intervention is highly vulner- able to diplomatic and propaganda exploitation. While the letters to the heads of governments of the United States, Great Britain, Franced and India provide further evidence of Moscow's determination to make the maximum political capital out of the Western action, they continue to avoid com- mitting the USSR to any specific action in the event of a West- ern rejection. Khrushchev's warning that "the world is on the brink of catastrophe" and his reference to Soviet possession of "bal- listic rockets of all types, including intercontinental ones" are designed to create the maximum alarm in world opinion in order to bring heavy pressure on Washington and London to limit the scope of their intervention and, ultimately, to with- draw their forces from the Middle East. Probably Khrushchev's immediate aim is to deter any Anglo-American action against Iraq or the UAR. His new notes climax a flurry of Sino-Soviet bloc moves on a broad front to inhibit any extension of Western operations. These have included government pronouncements and UN ac- tion to fan world opinion against the intervention, prompt dip- lomatic recognition of the Iraqi revolutionary government, military and naval maneuvers in bloc areas adjacent to the Middle East, private diplomatic warnings of bloc counteraction in the event of an attack on Iraq, and statements denying that continued Western access to Middle East oil has been jeopard- ized by the coup in Iraq. Khrushchev's proposal suggests the USSR's strategy will be to attempt to force the United States and Britain to reject ostensibly constructive Soviet initiatives for settling the Middle East crisis. The Kremlin almost certainly expects Washington, CONFIDENTIAL 21 July 58 CENTRAL INTELLIGENCE BULLETIN Page 1 Approved for Release: 2020/01/23 C03172427 Approved for Release: 2020/01/23 C03172427 la an� �� ALA a ar� NEI Node Londolt, and Paris to reject the call for a heads-of-government conference. Khrushchev's proposal to include Nehru and Secretary General Hammarskjold in the talks suggests, how- ever, that the USSR hopes to elicit a favorable reaction from them which will increase the discomfiture of Washington and London. The proposal that Hammarskjold be included and that the heads of government subinit"concrete recommendations for the cessation of the military conflict" to the UN Security Coun- cil are also aimed at undercutting the anticipated Western response that a summit conference is not required because the UN is already actively dealing with the problem. The Soviet leaders probably believe Khrushchev's pro- posal will lend additional strength to their long-standing de- mand for a major voice in any discussion or settlement of Middle Eastern issues. They probably will follow with de- tailed proposals for a settlement, based on the Soviet formula first advanced in February 1957 to counter the Eisenhower zeoctrine. This included renunciation by the major powers of the use of force in the Middle East, abstention from interfer- ence in the internal affairs of the Arab states, an embargo on arms shipments to the Middle East, and great-power coopera- tion in extending economic and technical assistance to the countries in this area. The tone and content of Khrushchev's letters strengthen the impression that the main Soviet response to the Anglo- American intervention will be confined to the diplomatic and propaganda fields. Despite the obvious attempts to generate maximum alarm throughout the free world about the threat of a global war, the USSR does not appear likely to undertake any commitments which might lead to Soviet military interven- tion in the Middle East under present circumstances. Moscow hopes to contain and ultimately eliminate the Anglo-American forces in the Middle East, while exploiting the Western action to the full to strengthen the forces of extreme Arab nationalism and Arab antagonism toward the West, and to draw the UAR and the new Iraq regime into ever closer alignment with and dependence on the Soviet bloc. CONFIDENTIAL 21 July 58 CENTRAL INTELLIGENCE BULLETIN Page 2 Approved for Release: 2020/01/23 C03172427 Approved for Release: 2020/01/23 C03172427 Noe Soviet DiplomatsItom Balkan Capitals Return to Moscow On 19 July, several high-ranking Soviet officials, pos- sibly including ambassadors, may have returned to Moscow from Belgrade and Budapest aboard the TU-104 carrying Air Marshal Rudenko home from Cairo. During a stopover in Athens, Rudenko conferred for a half hour with Soviet Am- bassador Sergeyev. Prior to landing in Moscow, the pilot requested that seven vehicles be provided for the passengers. Like Ambassador Zamchevsky in Yugo- slavia, the Soviet ambassador to Rumania is a candidate mem- ber of the CPSU central committee. The return of these diplomats would probably be in connection with discussions of the Middle East crisis, perhaps even on the central com- mittee level. TOP SECRET 21 July 58 CENTRAL INTELLIGENCE BULLETIN Page 3 Approved for Release: 2020/01/23 C03172427 Approved for Release: 2020/01/23 C03172427 IL ASIA-AFRICA Middle East Situation (Information as of 0100 EDT, 21 July): Lebanon: Although Lebanese Army commander General Shihab has professed the intention of moving to compress the rebel-held Basta section of Beirut by 21 July, he remains un- willing to take more drastic action against the rebels to liqui- date them. He apparently is attempting to stall in the hope of obtaining withdrawal of American troops from Lebanon. Meanwhile, he has urged rebel leaders and disaffected Leb- anese Army officers in Tripoli to defer a planned revolt against the government until 24-26 July. Other senior Lebanese Army officers have discussed plans for either a coup against Pres- ident Chamounror defection to the opposition. Rebel chief Salam in Beirut has advised rebel supporters in Damascus to hold off for the present on plans to form a free Lebanese gov- ernment in Damascus. Rebels in Tripoli on 20 July were or- dered to ambush and destroy a train which was reported sched- uled to carry supplies for American forces from Beirut to Tripoli. The Tripoli rebels are collaborating with the UN ob- server group in an effort to keep US forces from entering the Tripoli area. Jordan: The government of Jordan began a new series of arrests on 19 July because of reports that disaffected Jordai: jj ian Army units in western and northern Jordan were preparing to rebel and that reinforcements were infiltrating these areas from Syria. Such reports suggest that preparations for the Syrian-supported revolt, originally scheduled for 17 July, are being carried out. The UAR has launched heavy propaganda attacks on Husayn; Baghdad radio has called on Jordanians and Palestinians to kill King Husayn, and a "free" Jordanian radio claimed late on 20 July that rebellion had broken out in Jordan. Saudi Arabia's refusal to permit an airlift of POL to Jordan over Saudi territory came as a severe Shock, to King Husayn, who is increasingly aware that he now stands alone. TOP SECRE7 21 July 58 CENTRAL INTELLIGENCE BULLETIN Page 4 Approved for Release: 2020/01/23 C03172427 " Approve7f-o trrhelea .se: 2020/01/23 C03172427 Iraq: The new government of Iraq is taking steps to re- inforce troops at H-3 pumping station and at Habbaniya to meet a possible thrust from Jordan. Such a move from Jordan, however, is highly unlikely without major foreign assistance. Nasir-Khrushchev meeting: Nasir and Khrushchev dis- cussed "coordination of plans for defense of the Middle East" during their recent meeting in the USSR, Sudan: Sudanese Prime Minister Khalil, increasingly wor- ried over Egyptian subversive activity and the instability of the present coalition government, is reported to have ordered loyal military elements to establish military rule immediately follow- ing the adjournment of Parliament on 23 July. He hopes, with army support, to promulgate laws designed to eliminate Egyptian influence in the Sudan. Kuwait: The Vruler of Kuwait, whose sheikdom is the Midd1e East's largest oil producer, met twice with Nasir and other UAR leaders in Damascus on 20 July, according to press reports. The Ruler, who left Kuwait for Damascus on 13 July, has expressed belief in the necessity of reaching an under- standing with Nasir. The acting ruler in Kuwait, meanwhile, is reported visiting all army units in an effort to promote the loyalty of the troops to the ruling family. Many of the officers and noncommissioned officers in the Kuwaiti Army are Syrians. Palestinians, and Iraqis of uncertain loyalty. TOP SECRET 21 July 58 CENTRAL INTELLIGENCE BULLETIN Page 5 Approved for Release: 2020/01/23 C03172427 11.1..e% irk re me Approved for Release: 2020/01/23 C03172427 Noe vow Free World Comments on US Policies and on Khrushchev's Summit Proposal South Asia: Prime Minister Nehru, in "gratefully" ac- cepting Khrushchev's invitation to participate in a summit meeting, stated that India "would welcome a peaceful approach by negotiation through the United Nations or its Security Coun- cil or otherwise." The reply reiterated India's opposition to armed intervention by foreign troops, and noted that "we have urged the US and Great Britain to withdraw their forces." Of- ficial Indian sources are reported to have expressed doubt, however, that a high-level meeting in the present atmosphere would produce any quick results, and they indicated regret over the "words of threat" used by Khrushchev. Nehru and senior Indian officials were reported pleased with President Eisenhower's letter explaining the US position. They liked the letter's personal tone and the careful explana- tion of American motives. Nehru especially appreciated the long rundown on background events. Nehru is "absolutely con- vinced," however, that Nasir will not violate the Lebanese bor- der while it is being patrolled by a UN group, and that US troops are accordingly serving no useful purpose. In Pakistan, responsible opinion is ranging itself behind the US-UK action. Foreign Minister Baig stated that nothing would be done with respect to King Husayn's appeal for help to oust the new Iraqi regime without consultation with President Mirza, whose return from Tehran is expected on 22 July. Greek Prime wrin.ster Karamanlis he has long believed that the US had either to make a friend of Nasir or destroy him. He believes that Western success in the present venture is fundamental to the free world's security and that vacillation or retreat would only increase the danger of a world conflict. Meanwhile, other Greek officials privately expressed delight over the US action, but but are being cautious in public comments in order not to lose Arab support on the Cyprus question. Far East: According to press reports, the Japanese For- eign Ministry feels that Khrushchev's proposal for a summit SECRET 21 July 58 CENTRAL INTELLIGENCE BULLETIN Page 6 Approved for Release: 2020/01/23 C03172427 Approved for Release: 2020/01/23 C03172427 VOW conference is untimely in view of Japan's draft proposal in the UN. Japanese officials regard the move as a propaganda effort. The Indonesian Government has announced its decision to recognize the new Iraqi republic, apparently in the belief that such action will help forestall Western moves against Iraq. Africa: The Ethiopian prime minister privately approves the US intervention, but has publicly deplored its necessity. The government is being pressed by the Yugoslays, Indians, and others to join in condemnation of the United States, which the prime minister refuses to do. The government is exert- ing strong pressure on local newspapers to present a solid pro-Western view, and news dispatches unfavorable to the US are being suppressed. Moroccan press reports indicate that the Iraqi coup is ac- cepted with approval as a logical step toward freedom of the Middle East from "colonialist domination." Moroccans at all levels are reported hostile to the American intervention and feel that the use of American troops is further proof that the US is dedicated to colonial policies. Western Europe: Khrushchev's notes have brought favor-- able responses from Swedish Prime Minister Erlander and from the British Labor party. Erlander, expressing pleasure at the inclusion of Mr. Hammarskjold among those invited,, publicly urged acceptance of the-Proposal. British Labor)arty Zeader Gaitskell and his top associates called for quick accept- ance of the invitation and may believe this aspect of the Middle East issue offers a safer line for attacking the government than the intervention itself. British press comment also shows con- siderable sympathy for the idea of early summit talks. The French Foreign Ministry, following a special meeting between Premier de Gaulle and Foreign Minister Couve de Murville, instructed its missions to state that the Soviet invi- tation did not appear to be serious, and that the results of the UN Security Council meeting on 21 July would be reviewed be- fore a decision is made on any further initiative. Latin America: Official reaction to the Middle East crisis ranges from unconditional backing of the US position by some of SECRET 21 July 58 CENTRAL INTELLIGENCE BULLETIN Page 7 Approved for Release: 2020/01/23 C03172427 � Approved for Release: 2020/01/23 C03172427 Nave Nu? the smaller countries to tentative support of the United States by Mexico. The Communist-infiltrated government of Venezuela has refused to state its position at this time, and several other governments have not yet reached firm positions. Mexican and Brazilian officials warn that a two-thirds vote for the US in the General Assembly might not be forthcoming. Communist-inspired anti-US riots have twice erupted in Buenos Aires, and on 20 July Communists staged a mass meeting of 10,000 in Santiago. Chile. to protest the Anglo-American action. 21 July 58 CENTRAL INTELLIGENCE BULLETIN Page 8 Approved for Release: 2020/01/23 C03172427 Approved for Release: 2020/01/23 C03172427 Nviir Cambodia Set to Announce Diplomatic Recognition of Communist China Cambodia had accorded diplo- matic recognition to Communist China. Public announce- ment of the step, which will involve an exchange of am- bassadors, will be made within a few days. This development, a reversal of Cambodian policy of restricting ties with Peiping to economic and culturalt elds, follows several weeks of stage-setting by Premier Sihanouk. The/Prrince has been alluding to the need for Cambodia to seek a "powerful new ally" in the face of alleged Western in- difference to complaints of South Vietnamese border aggres- sion. He is also reported to have "tigged" the Cambodian National Assembly in favor of the decision in advance of its presentation for debate. Despite strong fears among many influential Cambodians that the step will intensify Communist subversive activity and jeopardize continuation of American aid, Sihanouk appar- ently is confident he can safely play both ends against the middle. It is possible, however, that open defiance of his power may develop among anti-Communist political and mil- itary elements. Cambodia's recognition of Communist China, which may be a prelude to a conclusion of a bilateral military pact as well, will virtually eliminate Nationalist China's dwindling in- fluence in Cambodia and adversely affect its prestige among Over- seas Chinese throughout Southeast Asia. It will also intensify Saigon's hostility toward Sihanouk which is based on the convic- tion that his accommodation to the Sino-Soviet bloc poses a serious threat to South Vietnam's security. South Vietnam would undoubtedly support any scheme aimed at removing Sihanouk from power. 21 July 58 CENTRAL INTELLIGENCE BULLETIN Page 9 Approved for Release: 2020/01/23 C03172427