CENTRAL INTELLIGENCE BULLETIN - 1958/03/18

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03177779
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 10
• Document Creation Date: January 27, 2020
• Document Release Date: January 30, 2020
• Publication Date: March 18, 1958

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3.5(c)
3.3(h)(2)E40
18 March 1958
Copy No, 3 7
CENTRAL
INTELLIGENCE
BULLETIN-
DOGNMI7f..4IN!(..).
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NEXT DATE;
AUTH:I 70- --
DATE.
10P-SECRET-
REVIEWER:
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ANL.
-T-eip-SEGRET-
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18 March 1958
I. THE COMMUNIST BLOC
USSR apparently engaged in construction
activity, possibly missile-associated, it.
northern Urals. 0
II. ASIA-AFRICA
Indonesia - Government forces again
control Medan.
Okinawa - Leftists win only 5 of 29 seats
in Ryukyuan legislature.
Chiang Kai-shek threatens to break relations
with Japan if Peiping trade mission is per-
mitted to fly flag in Tokyo.
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CENTRAL INTELLIGENCE BULLETIN
18 March 1958
DAILY� BRIEF
I. THE COMMUNIST BLOC
USSR - New missile installation: Missile-associated
con&cruction acuity in the northern Urals apparently was
in progress in late 1957 and is probably still continuing.
Transfers of senior special construction personnel associ-
ated with Klyuchi, and rail construction and
in the northern Urals area, suggest a major
construction effort, Available information does not permit
identification of the type of construction under way. Prepa-
ration of a guided-missile launching site or instrumentation
facilities are possibilities. (Page 1)
(Map)
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II. ASIA-AFRICA
Indonesia: Although the central government has regained
control of Medan, North Sumatra, the dissident troops with-
drew intact and are headed westward toward the Tapanuli
area, where they will probably link up with other antigovern-
ment forces. They apparently felt compelled to vacate the
city because expected reinforcements failed to appear. Mean-
while, government forces have occupied Rengat, the Stanvac
oil center in Central Sumatra. (Page 2)
(Map)
E4- Ryukyu Islands elections: Unofficial returns from legisla-
tive elections in the Ryukyus show that conservatives have
gained a majority of the 29 seats. Leftists, who won five
7t).
seats, apparently were unable to gain significant support
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TOP SECRET
outside the capital city of Naha. As a result of the con-
servative victory, Ryukyuan Chief Executive Thoma may
be able to form a new party which would ensure that the
legislature continues amenable to cooperation with the
US administration. (Page 3)
Taiwan - Japan: Chiang Kai-shek emphatically stated
on 16 March to Ambassador MacArthur, then in Taipei, that
he would sever relations with Japan if Prime Minister Kishi
allowed the Chinese Communists to fly the flag over their
trade mission premises in Tokyo. The Chinese Nationalists
have already broken off trade negotiations with the Japanese.
Previously, they had indicated they would confine diplomatic
action to -withdrawal of their ambassador to Tokyo.
(Page 4)
18 Mar 58
DAILY BRIEF
11
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I. THE COMMUNIST BLOC
Possible Guided Missile Construction Activity in
Northern Urals
Missile-associated construction activity in the north-
ern Urals was indicated by the transfer to this area, dur-
ing the latter half of 1957, of A. G. Kochetov� a high-level
military construction official, and at least four of his prin-
cipal subordinates. All were formerly associated with the
supervision of construction at Klyuchi, terminus of the pres-
sent USSR ICBM test range.
At his new post at Polyarnyy Ural, Kochetov was in-
formed by his superior in Moscow that a PX facility would
be opened there by the Northern Fleet, indicating the pres-
ence at Polyarnyy Ural of at least 500 men. The figure may
be low�some 2,000 military construction personnel were
transferred from Eastern Arctic and Far Eastern areas in
late 1956 and early 1957 to unspecified destinations.
Further indications include the identification of another
military unit (this one connected with railroad construction
and/or survey activity at Polyarnyy Ural since August 1957)
and the identification of a high security communications link
between Tyumen and Salekhard, near Polyarnyy Ural, in
January 1956.
Available evidence does not permit a conclusion on the
exact nature of the construction. The location of Polyarnyy
Ural on an established rail line on the northern periphery
of the Soviet Union suggests possible construction of ICBM
launch facilities, and the Polyarnyy Ural area is a favorable
location for early monitoring of the orbits of earth satellites
launched from Tyura Tam on either 65-degree or Polar orbits.
The former relationship of Kochetov and his associates with
preparation of monitoring installations at Klvuchi lends weight
to the latter possibility.
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New,
II. ASIA-AFRICA
Situation in Indonesia
The anti-Djakarta troops which seized the city of Me-
dan, North Sumatra, on 16 March have withdrawn from the
city, the airport, and the nearby port of Belawan, and:govern-
ment forces are in control of the area again.. During the
struggle, government forces were reinforced by paratroopers,
presumably detached from Central Sumatra.
Failure of this dissident action seems to have resulted
from lack of support from other forces, including the local
artillery unit and Darul Islam units fronl South Atjeh, that
had promised cooperation. The dissident troops, about one
battalion, are believed to be moving westward toward Tapa-
nuli, where two battalions are reported to have defected to
the Central Sumatra government. En ,route, however, they
may engage government troops stationed at Siantar. The
American consul' in Medan has recommended the evacuation
of all American dependents.
The central government is involved in clearing opera-
tions against the dissidents in the Rengat and Link areas
where Stanvac has oil fields. Caltex, which operates to the
north of Stanvac, was authorized by Djakarta on 17 March
to resume normal operations.
Lt. CoL Barham, commander in South Sumatra who
has so far remained neutral, publicly reiterated his plea to
both sides on 17 March for a negotiated settlement. At the
same time, however, he ordered his troops "to prepare
for all possibilities."
Barlia,n had advised dissident leader Hussein
that he had now decided to make use of weapons which he
earlier received from Hussein. The revolutionary leaders
interpret this as evidence that Barlian is leaning more to-
ward their side.
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Conservatives Victorious in Ryukyu Elections
Conservative candidates won a majority of the 29 seats
in the Ryukyu Islands legislative elections on 16 March, mak-
ing possible the continuation of a relatively harmonious rela-
tionship between the legislature and the US administration
on the islands.
The results are regarded as a setback for the leftists
who, although winning five seats compared with the one they
had in the previous legislature, apparently failed to win sig-
nificant support outside the capital city of Naha. Conserva-
tives running as,Democratic, Socialist Masses, or independ-
ent candidates appear to have won at least 18 seats, according
to unofficial returns�
The results of the elections may give Ryukyuan Chief
Executive Thoma, who supported many of the winning candi-
dates, influence which he could use in organizing a new par-
ty of conservatives and moderate Socialists. There are in-
dications that Okinawan political rivalries may be concen-
trated in two major parties, a conservative party headed by
Thoxna, and the already organized Okinawa Socialist party,,
headed by leftist Naha mayor Saichi Kaneshi and affiliated
with the Japan Socialist party.
Leftists remain in control of the Naha administration
and assembly and can be expected to continue their agita-
tion on the issues of American land policy and Okinawan
reversion to Japan. Popular feeling on these issues re-
mains high and may tend to restrain full legislative coopera-
tion with existing US policy.
-60-NFIDEAT-1424-
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��� 4. .1�� 411,41.1, AM.. 1 Iii�osa
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Chiang Kai-Shek Determined to Break Relations With Japan
Chiang Kai-shek stated with "great feeling and emotion"
in a 16 March conversation with Ambassador MacArthur, in
Taipei for the US chiefs-of-mission conference, that he would
"haul down his flag" in Tokyo and "sever relations with Japan,
if Prime Minister Kishi allows the Chinese Communists to
fly their flag over their trade mission premises in Tokyo,"
Chiang said he was willing to gloss over trade and other con-
cessions included in the recently signed agreement between a
group of private Japanese traders and Communist China if
the flag issue could be resolved.
The Chinese Nationalists broke off trade talks with Japan
on 13 March and indicated that their ambassador in Tokyo
would be withdrawn if the Japanese Government officially ap-
proves the agreement.
Foreign Minister Yeh is aware of the seriousness of a
complete rupture of relations, and will probably attempt to
calm Chiang Kai-shek. In the dispute over the entry of Outer
Mongolia into the United Nations in 1955, however, Chiang
demonstrated a willingness to ignore all advice and carry
through his intention. The Japanese Government has not yet
approved the trade agreement.
-60INFIDENTIAL
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