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January 27, 2020
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January 30, 2020
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January 16, 1958
PDF icon CENTRAL INTELLIGENCE BULL[15772461].pdf430.03 KB
Approved for Release: 2019/08/20 C03182294 I WI� 4015---1R-1- 4-49 3.3(h)(2) 3.5(c) NOT RELEASABLE TO FOREIGN NATIONALS CONTINUED CONTROL 16 January 1958 SC No. 00038/58 Copy No. 137 CEN TRAL DOCUMENT NO. NO CHANGE IN CLASS. ITI DECLASSIFIED CLASS. CHANGED TO::=Irt NEXT REVIEW DATE: AUTHI H 7 2 i)!\ (E. REVIEWER: THIS DOCUMENT CONTAINS CODE WORD MATERIAL --TOP-SECRET- ,ZApproved for Release: 2019/08/20 C031 'II Approved for Release: 2019/08/20 C03182294 PIO W .111 W�1114"11�1.,....1 � Approved for Release: 2019/08/20 C03182294 ,\ CENTRAL INTELLIGENCE BULLETIN 16 January 1958 4\ i\\\ �'N ti1/4 .ks� Ns, \ !,4\ \\ Approved for Release: 2019/08/20 C03182294 %.0 t DAILY BRIEF I. THE COMMUNIST BLOC In a new test of American determination to maintain free access to Berlin, the Russians delayed four US Army trains at the East German checkpoint of Marienborn up to ten hours on 14 and 15 January. This is the first interfer- ence with military trains since the new travel documenta- tion system, which was worked out with Soviet officials, was Introduced on 2 December 1957. Before then, similar harass- ment was fairly common. (CONFIDENTIAL) (See MAP on reverse page.) II. ASIA-AFRICA *The Indonesian central government is increasingly con- cerned over plans of the dissident leaders to establish a rival government in the near future. Apparently they are having difficulty in deciding when to act, but the latest re- port states that the break will come on approximately 16 January. The cabinet is threatening political and economic sanctions, including the cessation of financial support from Djakarta. The dissidents have been warned that force may be used against them, but such action cannot be taken until the arrival of military aid now being sought from both Com- munist and non-Communist European countries. (Page 1) The Iraqi cabinet will probably remain in office at least until after the Baghdad Pact meetings in Ankara at the end of January. Former Prime Minister Nun i Said will lead the Iraqi delegation to the meetings, and Prime Minister Mirjan apparently will not participate. These are additional signs that Mirjan does not fully control his cabinet. (SECRET NOFORN) cFrkr T lApproved for Release: 2019/08/20 C03182294 Approved for Release: 2019/08/20 C03182294 *NO krimO The unstable situation in the Syrian Army is ex- acerbated by the return from training in Cairo and Mos- cow of influential officers who have not found promised assignments. The struggle between the Communists and the socialist-nationalists air predominance is reflected in the increasing controversy over the popular issue of Syrian-Egyptian union. The socialist-nationalist press is attacking the Communist position, charging that the Communists are not giving the union proposals unqual- ified support. (SECRET NOFORN) Ceylon's estimated flood rehabilitation costs of $44,000,000 to $55,000,000 are over half of the 1958 budg- et funds allotted for economic development projects. Thus, development plans will probably be delayed, causing further economic stagnation. (CONFIDENTIAL) (Page 2) New Delhi apparently has requested an additional So- viet credit of $25,004 000 to $31,000,000 for the Bhilai steel plant to cover general price rises in India and else- where. This would augment a total of $283,000,000 in Soviet bloc industrial construction loans to India, includ- ing the previous loan of $132,000,000 for the Bhilai plant. (CONFIDENTIAL) (Page 3) The South Korean National Police have announced that arrested leftist leader Cho Pong-am has admitted "con- tact and connivance" with North Korean agents and that "important subversive documents" hidden at his home have been uncovered. While such announcements are suspect, and "subversive" documents could be almost anything the security agencies label as such, officials concerned with the investigation indicated before Cho's arrest that they had enough "evidence" to convict him. (CONFIDENTIAL) 16 San 58 DAILY BRIEF ii Vk\P\ProveCr To r Release: 201 COFEiik Approved for Release: 2019/08/20 C03182294 _ ';=N s,\\� The latest shake-up in the Venezuelan cabinet mdi- cates that President Perez has at least temporarily re- built his position among the controlling elements of the divided military. The change in the Interior Ministry, which controls the police' appears to make Perez him- self the de facto chief of this important ministry. The strength and duration of his military support, however, are still uncertain. (SECRET) (Page. '4)'. 4.1 1 III. THE WEST The French Government's decision to interrupt defense negotiations with Tunisia is probably a bid by Premier Gaillard for rightist support in _thp_ coaticknce vote scheduled for 16 January in the National Assembly which was precipitated by the veterans' aid issue. His position has been made increasingly precarious by op- position to his constitutional reform proposals and to the basic statute for Algeria which the Council of the Republic may return to the assembly with crippling amendments. (CONFIDENTIAL) 16 Jan 58 DAILY BRIEF iii \ \;1;ove-d for Release: Oi7R:MTM;k Approved for Release: 2019/08/20 C03182294 =4110 IL ASIA-AFRICA Situation in Indonesia Indonesia's dissident leaders are proceeding with plans for the early establishment of a rival Indonesian government. The chief Sumatran leader, Col. Simbolon, believes that action will be taken in the first week of Feb- ruary, but there appears to be some reluctance to make a final break with Djakarta, Central and South Sumatra will break with the central government on approximately 16 January and that Atjeh Province will follow suit, the dissidents have not yet decided when to act but are considering a move be- fore President Sukarno's return, expected in late February or early March. The central government is aware of these activities and has threatened economic, political, and military re- prisals. It has already ordered the outer regions to stop barter trade with neighboring areas or face the loss of government financial support. Premier Djuanda has since announced that orders are being prepared to discharge sev- eral dissident leaders from the army. The finance min- ister has threatened the use of force, presumably when the government receives the ships and arms it is seeking from both Communist and non-Communist European countries. The Indonesian arms purchasing mission has left Yugo- slavia without signing an agreement, is now in Czechoslo- vakia, and will proceed to Poland before returning to Belgrade. In Djakarta, the second phase of military exercises ordered by the local town command is scheduled for 17 January. The first phase provided cover for mass arrests, probably aimed primarily at non-Communist elements sus- pected of being oppose 16 Jan 58 SECRET CENTRAL INTELLIGENCE BULLETIN Page 1 Approved for Release: 2019/08/20 C03182294 Approved for Release: 2019/08/20 C03182294 d. �a. Jo. Ceylon's Financial Requirements for Flood Rehabilitation According to a preliminary, estimate by the Ceylonese Government, flood rehabilitation, will cost $44,000,000 to $55,000,000� This is over half the total budget funds al- lotted for economic projects in 1958. The projects pre- sumably will have to be delayed. Ceylon will need about 120,000 tons of rice and 20,000 tons of flour in addition to its normal imports of 400,000 and 200,000 tons of rice and flour respectively. Food stocks are abnormally low, and as of 8 January large amounts of rice and flour on order had not yet been shipped. The government spent approximately $315,000 on direct relief immediately after the floods. Emergency aid from foreign governments and private sources thus far totals ap- proximately $500,000. The need for relief measures is ex- pected to continue in some areas for as long as 14 months, until restored rice fields can be harvested. (CONFIDENTIAL) ----CONFIDEN111711-- 16 Jan 58 CENTRAL INTELLIGENCE BULLETIN Page 2 Approved for Release: 2019/08/20 C03182294 �Approved for Release: 2-019/a/ZCO3182294 %NO Indian Request for Additional Soviet Credit India may receive a credit of $25,000,000 to $31,000,000 for the Bhilai steel plant, now under construction with assist- ance from Moscow, in addition to the $132,000,000 in equip- ment already promised by the USSR. The additional credit would cover general price rises and the cost of equipment which cannot be procured locally as originally planned, Press reports state that Moscow's initial reaction to India's request has been "quite favorable," A separate Soviet loan of $126,000,000 in 1957 for various industrial projects, was augmented on 4 January by a sub- stantial Czech credit accepted by Prime Minister Nehru dur- ing Premier Siroky's current visit. The Czechoslovak loan Is believed to amount to at least $25,000,000, which will be applied to the construction of a foundry in Bihar State as part of India,'s program for production of industrial machinery. The bulk of the Soviet industrial loan has also been allocated to this program. (CONFIDENTIAL) -CONFIDENTIAL 16 Jan 58 CENTRAL INTELLIGENCE BULLETIN Page 3 Approved for Release: 2019/08/20 C03182294 ri Pry Approved for Release: 2019/08/20 C03182294 Irmo III. THE WEST Venezuelan President Now Reasserting His Authority The new shake-up in the Venezuelan cabinet on 13 January indicates that President Perez has at least temporarily reasserted his authority over key elements of the divided military. Perez has become defense min- ister himself and has in effect taken over the Ministry of Interior�which controls the National Security Police-- by apppinting one of his relatives as minister. General Llovera, who was minister of interior for three days, has resumed his former minor post in the cabinet. In addition to the ouster of General Fernandez from the Defense Ministry, the former air force and navy com- manders were also removed from the important political costs to which they had been appointed on 10 January. several high-ranking officers have been arrested. Increasing civilian unrest has accompanied the military disunity. Public demonstrations, in which students played a prominent role, were held on 10, 13, and 14 January, and there are rumors of plans for continuing civilian efforts aaainst the dictatorship. SECRET 16 Jan 58 CENTRAL INTELLIGENCE BULLETIN Page 4 Approved for Release: 2019/08/20 C03182294 Approved for Release: 2019/08/26-003182294 _ *NO DISTRIBUTION THE PRESIDENT The Vice-President Executive Offices of the White House Special Assistant for National Security Affairs Scientific Adviser to the President Director of the Budget Office of Defense Mobilization Operations Coordinating Board Board of Consultants on Foreign Intelligence Activities Special Assistant for Foreign Economic Policy The Treasury Department The Secretary of the Treasury The Department of State The Secretary of State The Under-Secretary of State The Counselor The Deputy Under-Secretary for Political Affairs The Deputy Under-Secretary for Economic Affairs The Deputy Under-Secretary for Administration Director of Intelligence and Research The Department of Defense The Secretary of Defense The Deputy Secretary of Defense The Secretary of the Army The Secretary of the Navy The Secretary of the Air Force The Chairman, The Joint Chiefs of Staff Commandant, United States Marine Corps The Director, The Joint Staff Chief of Staff, United States Army Chief of Naval Operations, United States Navy Chief of Staff, United States Air Force Assistant to Secretary of Defense for Special Operations Deputy Director for Intelligence, The Joint Staff Assistant Chief of Staff, Intelligence, Department of the Army Director of Naval Intelligence, Department of the Navy Assistant Chief of Staff, Intelligence, Department of the Air Force Supreme Allied Commander, Europe Commander-in-Chief, Pacific Federal Bureau of Investigation The Director Atomic Energy Commission The Chairman National Security Agency The Director National Indications Center The Director United States Information Agency The Director inrIVATZTIrThICIXTRIT AT Approved for Release: 2019/08/20 C03182294