CENTRAL INTELLIGENCE BULLETIN - 1960/01/08

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Document Number (FOIA) /ESDN (CREST): 
03184092
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RIPPUB
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U
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13
Document Creation Date: 
March 17, 2020
Document Release Date: 
March 26, 2020
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Publication Date: 
January 8, 1960
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PDF icon CENTRAL INTELLIGENCE BULL[15798884].pdf651.33 KB
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Approved for Release. 2020/03/13 C03184092 3.5(c) eatumerr NO. 6 NO SHANE IN CLASS. 71g. 0E.GLASSIC4kI1l OLASS. Of NUL 7C: TO S 0 NE/Cr Row; .2.0 MJTH 1.4 NATE:6 JUN. 1280enrawim 3.3(h)(2) 8 January 1960 Copy No. C 67 CENTRAL INTELLIGENCE BULLETIN -TOP-SECRET- Approved for Release: 2020/03/13 C03184092 Approved for Release: 2020/03/13 C03184092 Ask TOP SECRET Approved for Release: 2020/03/13 C03184092 ll,.I. � 8 JANUARY 1960 I. THE COMMUNIST BLOC Approved for Release: 2020/03/13 C03184092� .f4/41i.0 Flow of Tibetan refugees into Nepal in- creases; rumors of Chinese Communist incursions continue. II. AS1A-AFRICA Laos--Balanced composition of new pro- visional government should ease strains among various non-Communist groups. Burmese premier rejects invitation to Peiping for border negotiations. Afghan premier accepts Iranian invitation to discuss Helmand waters dispute. Libya may press for major change in American base agreement. liii. r'l'HE WEST Italian premier's resignation this month predicted by prominent Christian Demo- crats; Gronchi postpones visit to Moscow.� LATE ITEM 0 USSR makes first public announcement of planned rocket flight tests within spe- cific time period. TOP SECRET Approved for Release: 2020/03/13 C03184092 Approved for Release: 2020/03/13 C03184092 %re �.., CENTRAL INTELLIGENCE BULLETIN 8 January 1960 DAILY BRIEF L THE COMMUNIST BLOC Communist China - Nepal: The flow of Tibetan refugees into Nepal has increased marked17 during recent weeks, pos sibly as a result of reported Chinese troop movements west- ward along the undemarcated frontier. Rumors of sporadic Chinese incursions continif. Prime Minister Koirala� Is thinking of sending a note to Peiping protesting two Chinese intrusions in western Nepal; the Nepalese Government, however, continues publicly to deny any incursions and to minimize the threat from China, apparently hoping to avoid involvemput in the ginn-indi an hrrrrical. fai.iif II. ASIA-AFRICA Laos: The balanced composition of the provisional govern- ment appointed by the King on 7 January should ease the strains among the various non-Communist groups. The new premier is respected elder statesman Khou Abhay; he is the brother of Nhouy Abhay, who had been named by the King to select a new cabinet. The cabinet comprises four independents, three old-guard politi- cians, and three members of the young reformist group (CDNI). The primary mission of the new government is to prepare for gen- eral elections later this year. (Page 1) Burma - Communist China: Burmese Premier Ne Win on 3 January re- jectea unmese Communist Premier Chou En-lai's recent invita- tion to come to Peiping to negotiate the Sino-Burmese border issue, reiterating that Burma had already made its maximum concessions. Ne Win added, however, that if China would accept in advance Bur- ma's proposals of last June, he would be willing to come to Peipi this month to initial a border agreement. although the Chines_ej NNNN kz, Approved for Release: 2020/03/13 C03184092 \ Approved for Release: 2020/03/13 C03184092 % _ _I'obably will again reject the June "package plan" and insist that "further negotiations" are necessary, they have played down differences between the two countries. 1 Chou En-lai, in an apparent ef- fort to underscore China's desire for Burmese good will, at- tended the Burmese Embassy's independence day reception this week in Peiping, his first appearance at a non-Commu- nist reception for some monthR1 zu ucuuzLcup-LL cui. Ltuguctii rrime RUMS cer .uaua nas ac- cepted Iranian Prime Minister Eqbal's invitation to discuss the dispute over the division of the Helmand River waters, Daud intends to stop off in Tehran for three or four days on his way to Europe for medical treatment probably sometime after mid-January. Daud's willingness to leave the country probably indicates that he feels the unsettling effects of the Kandahar riots and of the recent death of the influential Shah Mahmud have been overcomyg (Page 2) Libya: (the Libyan undersecretary of finance has informed an American official in Bengasi that Libya will seek substan- tial modification of the American base agreement if necessary to get "satisfactory" payment for American use of Wheelus Air Base. As an alternative to the present aid program, he pro- poses assessment of customs duties on Wheelus Base imports which he claims would bring in some $28,000,000 per year. If the US refuses this, he said, Libya could then go to the UN and ask that US forces be moved out of the country. While it re- mains to be seen how strongly the government may follow through on the undersecretary's proposal, there is strong dissatisfaction in the Libyan Government with present American aid commit- ments�. (Page 3) III. THE WEST Italy: There are increasing signs of conflict, within the Christian Democratic party and between it and its allies, which id,7) 8 Jan 60 DAILY BRIEF ii TOP SECRET \1"-* � Approved for Release: 2020/03/13 C03184092 aaa 'M�& ,`�t, ' ' Approved for Release: 2020/03/13 C03184092 _ titre Zhreatens the tenure of the Segni government. Prominent e.� hristian Democrats are predicting that Segni may resign before the end of January. President Gronchi is deeply in- volved in the current political maneuverings, and the last- minute postponement of his trip to Moscow, which had been scheduled to start on 7 January, may have been occasioned by his concern over the possibility of a cabinet crisis rather than by illness, as publicly announced (Page 4) LATE ITEM *USSR: The TASS announcement on 7 January that flight tests of a more powerful rocket booster for space vehicles would be undertaken between 15 January and 15 February 1960 is the first public Soviet announcement that such tests wouldbe made within specified dates. The reported impact area covers about 45,000 square miles of the Pacific with the center about 550 miles south of Johnston Island and 400 miles west-northwest of Palmyra Island, The USSR says Soviet ships will be in the impact area, and asks other governments to re- frain from sending ships or aircraft into the area during the specified time period. On 7 January, three of the four Soviet Sibir-class instru- mentation ships were observed stopped in the water about 400 miles southwest of Midway, some 1,200 miles northwest of the reported impact area. The fourth ship was located about 560 miles west-northwest of Midway. These ships participated in a practice exercise with the Tyura Tam rangehead on 6 January. The validity of the Soviet statement that the projected tests will be in development of a more powerful rocket system for space vehicles cannot be determined at this time. The center of the impact area is about 6,500 miles from the Tyura Tam rangehead. Current estimates give the Soviet ICBM a range of 5,500 to 7,500 miles depending on the weight of the nosecone. The Soviets are considered capable of testing to this range dur- ing the time period specified or before, if they so choose. 8 Jan 60 DAILY BRIEF iii �,1!.Aaarxr:7�W''"'s""`"' ��, � . . � �NMRM Approved for Release: 2020/03/13 C03184092 \'� LI \Z=TrizzzRa763/13 C031840911: IV. SIGNIFICANT INTELLIGENCE REPORTS AND ESTIMATES (Available during the preceding week) Situation in the Caribbean Through 1960. SNIE 80-1-59. 29 Dec 1959. 8 Jan 60 DAILY -BRIEF iv TOP SECRET � Approved for Release: 2020/03/13 C03184092 Approved for Release: 2020/03/13 C03184092 V B.-4L 1 1 1-11, 1411101 I. THE COMMUNIST BLOC ASIA-AFRICA. New Government in Laos The balanced composition of the provisional government appointed by the King on 7 January should ease the strains be- tween the various non-Communist groups. Khou Abhay, the new premier, is a respected elder statesman whose most re- cent position was as president of the King's Council. In addi- tion to Khou, three other political independents are in the cab- inet, including Khou's brother, Nhouy Abhay, who reportedly selected the cabinet and who will serve as deputy prime minister and minister of education. The remaining six portfolios are split evenly between the reformist Committee for Defense of National Interests (CDNI), which will control the key ministries of foreign affairs, defense, and finance, and former Premier Phours Rally of the Lao People (RLP) which will control, among other posts, the interior ministry. Minister of Defense General Phoumi, an important CDNI leader, is the only military figure in the cabinet. The cabinet appears to be a generally capable one and is probably the best that could have been obtained under present political conditions in Laos. Its main function will be to prepare the country for general elections later this year. In the process, there is likely to be considerable jockeying between the CDNI and the RLP, but in view of the CDNI's enhanced power position, it will probably have the predominant voice in choosing the candi- dates for the anti-Communist slate. Many of the new cabinet members are close to the King, who may play a more active, if still indirect, role in governmental affairs. 8 Jan 60 -C-ONREE- CENTRAL INTELLIGENCE BULLETIN Approved for Release: 2020/03/13 C03184092 Page 1 Approved for Release: 2020/03/13 C03184092 Afghan Prime Minister Daud to Visit Tehran to Discuss Helmand Dispute afghan Prime Minister Daud has accepted Iranian Prime Minister Eqbal's invitation to discuss the dispute over the di- vision of theHe1niancLRiver waters, Daud intends to stop off in Tehran for� ree or four days on his way to Europe for medical treatment, but he has asked that there be no official ceremonies. No date for the visit has yet been set. Daud will probably wait until after the visit of his brother, Foreign Minister Naim, to Pak- istan beginning 10 Januaryq Iranian Government has long been concerned that Hel- mand delta lands in Iran may be deprived of minimum water requirements by the development of irrigation projects along the Helmand River within Afghanistan. Tehran has repeatedly urged negotiations in an effort to secure a guarantee of a satis- factory volume of Helmand water for Iran. Iran's concern has apparently been heightened by Afghanistan's recent expressions of interest in building a new diversion dam near the bordel. ale talks may improve relations between Afghanistan and Iran, but a settlement of the dispute seems unlikely at this time. Tehran wants a guarantee of 35 cubic meters of water per sec- ond and has already turned down a neutral commission's recom- mendation of 22 meters in 1950 and a subseciuent offer of 26 bv the Afghan King. ud's postponement of his trip to Europe, originally set for December, was presumably attributable to the recent riots in the city of Kandahar. His new plans suggest that he believes the threat of further defiance of government authority is nassince-7 TOP SECRET DAUNT 8 Jan 60 CENTRAL INTELLIGENCE BULLETIN Page 2 Approved for Release: 2020/03/13 C03184092 Approved for Release: 2020/03/13 C03184092 Noe' Sue Libyan Pressures For More J,JS Aid With Fewer Controls /Libyan officAls are continuing &heir pressure for more US financial aid and fewer controls on expenditure as the price for American air-base rights in Libya. Libyan Un- dersecretary of Finance Shaglouf has informed an American official in Bengasi that, as an alternate to the present aid program, he proposes assessment of customs duties on Wheelus Base imports, which he claims would bring in some $28,000,000 per year--all of it completely under Lib- yan control. Shaglouf feels that if the United States should refuse to modify the base agreement to permit this, the Libyan Government should then go to the United Nations and ask that US forces be moved out of Liby_a3 be Libyan-American base agreement, valid until 24 December 1970, was signed in 1954. In November 1958, how- ever, the Libyan Government initiated negotiations for revi- sion of the financial clauses of the agreement, seeking larger US aid funds completely at the disposal of the Libyan Govern- ment. Total US aid to Libya was about $25,000,000 in each of the Libyan fiscal years 1957 and 1958 and will amount to more than $32,000,000--including emergency drought assistance--in the current fiscal year ending 31 March. The Libyan Govern- ment had a completely free hand, however, in the expenditure of only a small part of this alcL17.. he prime minister and other leading Libyan officials have registered strong dissatisfaction with American aid proposals for fiscal 1960, which are similar to those of the preceding years. It is not clear how much governmental support Shaglouf has for the change he proposes, but the Libyan Government is almost certain to make new demands in connection with its con- sideration of the draft budget immediately after the 17 January parliamentary election) 8 Jan 60 CONFIDENTIAL CENTRAL INTELLIGENCE BULLETIN Approved for Release: 2020/03/13 C03184092 Page 3 Approved for Release: 2020/03/13 C03184092 *Assi III. THE WEST Threats to Segni Government Premier Segni's minority Christian Democratic govern- ment may soon face a crisis over whether it should seek sup- port from the left or the right and over what stand it should take on controversial legislation. The last-minute postpone- ment of President Gronchrs trip to the USSR, publicly attrib- uted to illness, may have been the result of pressure from right-wing elements who support the government, or from restive left-wing Christian Democrats who desire its fall. Continued alliance witlItheright-:- Liberals, Monarchists, and neo-Fascists--threatens to damage the showing of the Christian Democratic Party (CD) in the nationwide local elec- tions planned for spring, and leaves the government vulner- able to attack by former Premier Fanfani's Christian Demo- cratic left wing. 1anfanl is reported to have said the govern- ment would fall in February; several prominent Christian Democratic senators have predicted its January demise-.1 The Christian Democratic right wing and the rightist parties supporting Segni fear a CD alliance with the Nenni Socialists. Party Secretary Moro recently proffered a hand to the Nenni Socialists in Sicily and publicly affirmed the anti- conservative nature of the CD, thus alarming the government's rightist allies. Current issues on which either side could bring about a cabinet fall are: a controversial antitrust bill; the nuclear energy act, which some Christian Democrats feel would per- mit private control of energy development; and the "green plan" for agriculture, which will require 00,000,000 in fi- nancing. An additional source of friction is Segnies proposal to remove the editor of II Giorno a newspaper financed by oil tycoon Mattel, who favors the left wing of the Christian Democratic party. 8 Jan 60 --bbeftET CENTRAL INTELLIGENCE BULLETIN Page 4 Approved for Release: 2020/03/13 C03184092 Approved for Release: 2020/03/13 C03184092 'WA til7trill1711, 111 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 Director, Office of Defense and Civilian Mobilization Director, National Aeronautics and Space Administration Special Assistant for Security Operations Coordination Chairman, Board of Consultants on Foreign Intelligence Activities Special Aosistant for Foreign Economic Policy Executive Secretary, National Security Council The Treasury Department The Secretary of the Treasury The Department of State The Secretary of State The Under Secretary of State The Under Secretary of State for Economic Affairs The Deputy Under Secretary for Political Affairs The Deputy Under Secretzry for Administration The Counselor Director, International Cooperation Administration The Director of Intelligence and Research The Department of Defense The Secretary of Defense The Deputy Secretary of Defense Assistant Secretary of Defense for International Security Affairs 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 Director for Intelligence, The Joint Staff Assistant Chief of Staff for Intelligence, Department of Army Director of Naval Intelligence, Department of Navy Assistant Chief of Staff, Intelligence, Department of the Air Force Supreme Allied Commander, Europe Commander in Chief, Pacific The Department of Commerce The Secretary of Commerce Federal Bureau of Investigation The Director Atomic Energy Commission The Chairman National Security Agency The Director National Indications Center The Director Approved for Release: 2020/03/13 C03184092 ,