CENTRAL INTELLIGENCE BULLETIN - 1958/03/06

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03177772
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 19
• Document Creation Date: January 27, 2020
• Document Release Date: January 30, 2020
• Publication Date: March 6, 1958

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6 March 1958
Copy No437
INTELLIGENCE
DOCUMENT NO.
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6 MARCH 1958
L THE COMMUNIST BLOC
Tyura Tam- Klyuchi ballistic missile
test range resumes activity; range
considered in state of readiness, and
operations, not necessarily imminent,
could begin with little or no warning.
Khrushchev may be considering
assumption of premiership in April
if summit talks appear likely.
USSR continues pressure for
diplomatic relations with Malaya.
IL ASIA-AFRICA
Nasir, Sarraj launch open attack on
Saud exposing his covert opposition
to UAR
Indonesia - Djakarta continues moves
toward invasion of dissident areas.
Algeria - Upsurge of rebel activity
continues.
0 Moroccan leaders consider exchange
of ambassadors with USSR
0 Saud reports he rebuffed visiting
Soviet diplomat's offer of aid,
diplomatic relations.
Kishi criticizes trade accord signed
with Chinese Communists for ex-
cessive concessions.
III. THE WEST
Selection of new Cuban cabinet may
cause crisis if Batista excludes
opposition representatives.
-T-0P-SEeRET
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DAILY BRIEF
I. THE COMMUNIST BLOC
*USSR-Missile Test Range (as of 0200 6 March): There
has been a resumption of activity at both ends of the USSR's
Tyura Tam-Klyuchi ballistic missile test range on 5 March.
There is no indication at present that the activity observed
at both ends of the range involves an actual countdown, but
aircraft activity has been of such a nature that the range
must be considered in a state of readiness, and a launch-
ing operation could begin with little or no warning. This
does not necessarily imply that a launching attempt is im-
minent.
Soviet leadership: Ambassador Thompson believes
that chances are about even that Khrushchev will replace
Bulganin as premier in April if it becomes clear that a
summit meeting will take place at a reasonably early date.
Khrushchev presumably would prefer to be the official
leader of the Soviet delegation at such a conference. Bul-
ganin's prestige has been declining for some time and it is
likely he will be replaced. Khrushchev, however, might
hesitate to assume Stalin's dual position as head of party
and government. ( (Page 1)
Soviet approach to Malaya: The Soviet delegation at
the ECAFE conference in Kuala Lumpur has been cam-
paigning vigorously for the establishment of diplomatic
relations between the USSR and Malaya. Although the So-
viet overtures have been rebuffed on the grounds that such
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II. ASIA-AFRICA
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relations are not practical as long as Communist terrorists
remain active, the Malayan Government will be under mount-
ing domestic pressure from increasingly articulate leftist
and neutral elements to reverse its stand.
(Page 2)
Nasir opens attack on King Saud: Nasir has publicly
attacked King Saud by exposing Saud's clandestine efforts to
prevent formation of the United Arab Republic and subse-
quently to break it up. Syrian army intelligence chief Sar-
raj has echoed Nasir's attack. This is the first time Nasir
has categorized the protector of Islam's holy places as among
the agents of Western imperialism, and it may mark Nasir's
open break with the traditionally respected elements in the
Arab world. These moves suggest that Nasir is confident
that he can now use his popular support throughout the area
to neutralize, or defeat from within, those governments
which oppose him.
(Page
Indonesia: Indonesian military forces are continuing
to make moves to invade both Central Sumatra and North
Celebes. Continuing talks between President Sukarno and
former vice-president Hatta, however, suggest the remote
possibility that they may agree on a compromise settlement
acceptable to the dissidents.
(Page 4) (Map)
Algeria: The upsurge in rebel activity noted in late
January continues, especially in eastern Algeria. French
officials deny that any specific step has yet been taken toward
6 Mar 58
DAILY BRIEF ii
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the creation of a "no man's land" near the Tunisian frontier.
Nevertheless, the recent forcible eviction by the French
military of a large number of Algerians from a frontier
village may have been an initial step toward the establish-
ment of such a zone. (Page 5) (Map)
Morocco= USSR: Moroccan Foreign Minister Bala-
frej, who heretofore has opposed the establishment of
diplomatic relations with the USSR, now feels such rela-
B--Q tions are inevitable and has suggested an exchange of am-
bassadors to King Mohamed V. Rabat also plans to make
an official request to the US for arms and equipment for the
royal army. (Page 6)
X.0
Saudi Arabia - USSR: King Saud states that, during
the recent visit to Riyadh of the Soviet ambassador to
Damascus, he rebuffed the ambassador's request for for-
mal Soviet - Saudi Arabian diplomatic relations and turned
aside a general Soviet offer of assistance. The Soviet
diplomat, however, was allowed to visit the Dhahran air
base. (Page 7)
Japan - Communist China: Private Japanese trade
representatives have apparently accepted Chinese Commu-
nist terms in signing a one-year trade agreement, provid-
ing for $100,000,000 volume each way and an exchange of
permanent trade missions. Prime Minister Kishi has crit-
icized the Japanese representatives for acceding to Commu-
nist China's demands for certain diplomatic privileges for
its trade mission, particularly the right to fly its national
flag in Japan. He said his government would "find it diffi-
cult" to approve these terms. page 8)
III. THE WEST
Cuba: A serious political crisis may result if Pres-
ident Batista fails to include members of opposition parties
6 Mar 58
DAILY BRIEF iii
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in his new cabinet, as suggested by the Roman Catholic
hierarchy on 1 March. Batista, whose old cabinet re-
signed last week to enable most of its members to run
for office in the 1 June general elections, has shown a
strong inclination against the proposal, but open rejec-
tion would cause a wave of public protest which could
prompt dissident army elements to attempt to seize
power. (Page 9)
6 Mar 58
DAILY BRIEF iv
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**moil
I. THE COMMUNIST BLOC
Embassy Speculates Khrushchev May Take Over
Soviet Premiership'
Speculation has increased in diplomatic circles in
Moscow that Khrushchev may replace Bulganin as pre-
mier, according to Ambassador Thompson. A logical
time to retire Bulganin, whose prestige has been declin-
ing for some time, would be the first meeting of the
newly elected Supreme Soviet, to be held sometime in
April. On the assumption that Khrushchev would prefer
to be the official number-one Soviet delegate at a summit
conference, the ambassador believes the chances are
about even that Khrushchev will take over the premier-
ship in April if it is then clear that a summit meeting
will take place at a reasonably early date.
While the question of Khrushchev's role at a summit
conference may influence any decision on the premier-
ship, internal political opposition to the personal dom-
inance of one leader may restrain him� Leadership of
government and party has not been formally entrusted to
one man since Stalin's death, and Khrushchev is already
vulnerable to the "cult of personality" charge. The em-
bassy in Moscow has received information from a reliable
source confirming that several members of the presidium
were extremely annoyed at his action in publicly raising
the question of the abolition of Machine Tractor Stations
before discussing it in the presidium.
-CONFIDENTIAL
6 Mar 58
CENTRAL INTELLIGENCE BULLETIN Page
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Malaya Rejects Soviet Proposals for Diplomatic Exchange
Malayan Prime Minister Abdul Rahman% firm rejection
of the Soviet proposal for establishing diplomatic relations,
made by Deputy Foreign Minister Firyubin in Kuala Lumpur
on 4 March, is in line with his policy of refusing formal
relations with any bloc country until the ten-year-old Com-
munist rebellion in Malaya is ended. Firyubin's approach
culminated an informal campaign among Malayan officials
by Soviet delegates attending the current ECAFE conference
In Kuala Lumpur.
Since Malaya became independent last August there has
been a marked growth in leftist and neutralist strength there
which was reflected in left-wing electoral victories in local
elections and a legislative council by-election last fall. This
growth of neutralist sentiment and the probability of substan-
tial leftist gains in the national elections in 1959 are likely
to increase the pressure on the Rahman government to mod-
ify its adamant stand against relations with the bloc.
Moscow is exploiting the ECAFE conference to augment
its diplomatic drive to expand relations in the area. Firyubin
reiterated on 3 March an invitation of last January to the
Thai premier to visit the USSR. The Thai leader, however,
declined Firyubin's invitation. Soviet ECAFE delegates are
also attempting to impress Malayans by suggesting the pos-
sibility of aid in the nuclear field, by invitations to Moscow,
and by statements that the USSR would welcome all the rubber
It can get. These moves follow a Soviet approach in Novem-
ber jor a permanent trade representative in Malaya. (
SECRET
6 Mar 58 CENTRAL INTELLIGENCE BULLETIN
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IL ASIA-A
Nasir Launches Attack on King Saud
Nasir has commenced a campaign to discredit King Saud by
publicizing Saud's clandestine efforts to undermine the govern-
ments of Egypt, Syria, and Yemen and break up the United Arab
Republic. In a speech on 5 March, Nasir asserted that three
checks "from Riyadh," amounting to $5,300,000, had been offered
Syrian G-2 chief Sarraj at the end of February to prevent Syrian
unity with Egypt. Sarraj has openly named Saud as the source of
the money, and has accused him of trying by bribery to block
Arab unity. Testimony on 4 March in the treason trial in Cairo
publicly implicated Saud in a conspiracy last summer with cer-
tain Western powers to overthrow Nasir and restore the Egyptian
monarchy. Apparently in anticipation of this public break, Nasir
had arranged for the Egyptian armed forces mission in Saudi
Arabia to withdraw about 11 March.
In addition to bringing the split with Saud into the open, Nasir
may now seek to exploit his initiative by working among pro-Egyp-
tian members of the Saudi. royal family to overthrow the King.
6 Mar 58
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CENTRAL INTELLIGENCE BULLETIN Page 3
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'sow
MALAYA
SINGAPORE
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INDONESIA
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6 MARCH 1958
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CHINA
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NEW GUINEA
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ARAFURA SEA
AUSTRALIA
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AV. A Awl Arad ol Awl A
Indonesia
Djakarta is preparing for military operations against the dissi-
dents in North Celebes as well as Sumatra
this operation will involve five battalions of army troops
and various supporting units. This force was to have started assem-
bling in Palopo in Central Celebes on 1 March, and at least one bat-
talion, the 527th, is already on its way. The objective of this force
is Gorontalo, a town with an airfield located about 200 miles from
the dissident stronghold of Menado.
The Central Sumatran dissidents reportedly have deployed some
3,000-3,500 men in the Padang-Bukittingi area to meet any amphibious
assault on the west coast, and 1,500-2,000 in the area between Pakan-
baru and the east coast.
Reports from Djakarta continue to suggest the remote possibility
of a compromise between Hatta and Sukarno that might be acceptable
to the rebels. It still seems probable, however, that the only meeting
of minds between the two men will be on the basis of a surrender by
Hatta.
Meanwhile, Indonesia is oreparine to take further advantavp nf
Communist bloc assistance�
6 Mar 58
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SPAIN
�Tiemeen
MOROCCO
Tenes
EDITERRANEAN SEA
Constantine.
ALGERIA
Morice Line (electrified barrier)
Frenca Army clashes with rebel units
21 Fearuary - 8 Marcil 1958
0 200
6 MARCH 1958
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The Situation in Algeria
Guerrilla activity by the Algerian rebels continues at
the stepped-up level noted since late January and may
presage a spring "offensive"--especially in the form of
increased terrorist attacks in the cities--which will cause
a still more serious deterioration in the security situation,
Although sharp clashes and a rise in urban terrorism have
been reported from all parts of northern Algeria, the rebels
are particularly active in the eastern part of the country on
either side of the "Morice Line," the electrified barbed-
wire barrier erected along the Bone-Tebessa railway. The
American consul general in Algiers has been informed by
visitors from the Bone region that even main highways
throughout that area are now unsafe and that the country-
side is at the "complete mercy" of the rebels each night.
French-released figures indicate that more French military
personnel were killed last month than during any previous
month of the rebellion and that both the quantity and quality
of weapons now reaching the rebels have greatly improved.
Meanwhile, French officials in Paris and Algiers in-
sist that the projected "no man's land" near the Tunisian
frontier is still in the planning stage and would, in any
event, consist of not more than a narrow border zone three
to five miles in depth. However, the forcible eviction last
month of some 3,000 Algerians from the border village of
Beldcaria and its environs may have been regarded by some,
at least among the military leaders who ordered the opera-
tion, as an initial step toward the creation of an interdicted
zone along the entire frontier. At least some "scorched
earth" tactics appear to have been applied to the area in-
volved.
SECRET
6 Mar 58
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vise
� Morocco May Exchange Ambassadors With USSR and Ask
For American Materiel
Moroccan Foreign Minister Balafrej, who haretofore has
opposed closer relations with the USSR, told King Mohamed V
that ambassadors probably will have to be exchanged
with Moscow). The King, who also has opposed suCh a move, is
now seriously considering this step.
feeling within the government
and the dominant Istiqlal party for such an exchange is now so
strong that it can no longer be ignored. The Moroccans are
particularly sensitive about the fact that the major Western
powers as well as the United Arab Republic maintain embassies
in Moscow.
Rabat is also reported to be considering an early request
for American arms and equipment for the royal army and gen-
darmery. The Moroccans strongly resent the fact that France
has a near monopoly over the equipment of their forces and can
therefore exercise substantial control over Moroccan military
capabilities. They also believe that inasmuch as the United
States supplies materiel for France and Spain, it should agree
to a Moroccan request.
6 Mar 58
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King Saud Says He Rebuffed Soviet Approaches
King Saud has indicated that his policy toward the
Soviet Union has not changed as a result of the visit to
Riyadh this week by S. S. Nemchina, Soviet ambassa-
dor to Syria. Saud told Ambassador Heath that in
response to Nemchina's persistent requests for the
establishment of Saudi-Soviet diplomatic relations, Jhe
had replied that he felt no enmity toward Russia but
that, in view of the international situation and his posi-
tion as guardian of the holy places, the time is not
propitious. When Nemchina asked if Soviet representa-
tives would in the future be allowed to come occasionally
to see the King, Saud, modifying his earlier'stand, said
this woUld dependon future events, ,
Saud also said he turned aside Nemchina's offer of
economic or military assistance by saying that the Saudi
Government expected to solve its financial problems with
its new "austerity" budget. When Nemchina said he un-
derstood Dhahran airfield is a military base, Saud replied
that it was not an "atomic base" for anyone. In response
to Nemchina's request, Saud allowed the ambassador and
a "personal interpreter" to visit the base on 2 March.
Saud's account of the interview with Nemchina does
not mention the personal message to Saud from Bulganin
which was the basis for the Soviret envoy's request to visit
the King.
SECRET-
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Kishi Criticizes Trade Accord With Peiping Signed by
Private Japanese Representatives
Private Japanese trade tepresentatives apparently have
violated government instructions in accepting all of Commu-
nist China's terms when they signed a one-year private trade
agreement and an accord to exchange permanent trade mis-
sions with certain diplomatic privileges. The trade agree-
ment, which calls for $104,000�000 each way, differs from
earlier agreements of this nature by providing for direct
settlement of trade balances between Chinese and Japanese
banks.
Japanese Prime Minister Kishi has criticized the accord,
saying that his government would "find it difficult" to approve
all the terms. He is particularly opposed to the provision
which would permit Communist China to fly its national flag
over the proposed mission in Japan.
The trade agreement has been received enthusiastically
outside government circles in Japan and creates a dilemma
for Kishi. Under pressure from all political elements: he
has been attempting to expand trade with Communist China
without extending formal recognition or violating COCO1V1
controls. Complete rejection of the trade agreement and
mission accord, both of which Peiping insists must be ac-
cepted before trade can increase appreciably, would almost
certainly create a severe political handicap for Kishi� who
must face elections by February 1959.
CONFIDENTIAL
6 Mar 58
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JILL
III. THE WEST
Appointment of New Cuban Cabinet May Precipitate
Political Crisis
A political crisis is developing in Cuba over replac-
ing the cabinet, which resigned last week to allow most
of its members to run for office in the 1 June general
elections. President Batista must now decide whether
to accede to demands voiced by the Roman Catholic hier-
archy on 1 March that he appoint a "national unity" cabi-
net including members of opposition parties--a course
which would weaken his own position. His failure to do
so may, result in
an attempt by dissident army elements to seize power.
It would certainly cause a wave of public protest and
lend support to charges that the June elections will not
be free.
Rebel leader Fidel Castro is calling for a general
strike before the end of March, but other important
opposition groups oppose such a move. Leaders of
the powerful Confederation of Cuban Workers (CTC),
whose strong progovernment attitude was largely re-
sponsible for the failure Of a strike attempt last Au-
gust, may be modifying their pro-Batista stand in
favor of a more neutral position. If so, this would
provide a more favorable atmosphere for a strike at-
tempt; without the active support of the CTC, however,
a strike would have little chance of success.
SECRET
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CENTRAL INTELLIGENCE BULLETIN
6 March 1958
DAILY BRIEF
I. TEE COMMUNIST BLOC
*USSR.Missile Test Range (as of 0200 6 March): There
has been a resumption of activity at both ends of the USSR's
Tyura Tam-Klyuchi ballistic missile test range on 5 March.
There is no indication at present that the activity observed
at both ends of the range involves an actual countdown, but
aircraft activity has been of such a nature that the range
must be considered in a state of readiness, and a launch-
ing operation could begin with little or no warning. This
does not necessarily imply that a launching attempt is im-
minent.
Soviet leadership: Ambassador Thompson believes
�that chances are about even that Khrushchev will replace
Bulganin as premier in April if it becomes clear that a
summit meeting will take place at a reasonably early date.
Khrushchev presumably would prefer to be the official
leader of the Soviet delegation at such a conference. Bul-
ganin's prestige has been declining for some time and it is
likely he will be replaced. Khrushchev, however, might
hesitate to assume Stalin's dual position as head of party
and government. (Page 1)
Soviet approach to Malaya: The Soviet delegation at
the ECAFE conference in Kuala Lumpur has been cam-
paigning vigorously for the establishment of diplomatic
relations between the USSR and Malaya. Although the So-
viet overtures have been rebuffed on the grounds that such
_ _
relations are not practical as long as Communist terrorists
remain active, the Malayan Government will be under mount-
ing domestic pressure from increasingly articulate leftist
and neutral elements to reverse its stand.
A serious political crisis may result if Pres-
iden Batista fails to include members of opposition parties
Irkhis,new callnet, as suggested by the Roman Catholic
hierarchy on 1 'March. Batista, whose old cabinet re-
signed last week to enable most of its members to run
for office in the 1 June general elections, has shown a
strong inclination against the proposal, but open rejec-
tion would CApproved for Release: .(:).19/08/20.00317/772h could
ks,