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June 14, 1958
Noe Approved for Release: 2019/08/20 C03194458 -TOP-SECRET- 3.3(h)(2) 3.5(c) 14 June 1958 Copy No. Ct \TRAL IYTELLIGENCE BULLETIN' NO CHANGE IN DOCUMENT NO. .! DECLASSIFIED CLASS, CHANGED TO: Tieloo NEXT REVIEW DATE: HR 2 DAT REVIEWER: -TOVS-Eat-E-T- Approved for Release: 2019/08/20 C03194458 Approved for Release: 2019/08/20 C03194458 . Nge, 414, 111 It Ms II Approved for Release: 2019/08/20 C03194458 Approved for Release: 2019/08/20 C03194458 16,,LoLdita..? 14 JUNE 1958 L THE COMMUNIST BLOC Khrushchev's letter of 11 June pres, ages demand for early agreement on foreign ministers' meeting and hints at some flexibility on summit agenda topics. II. ASIA-AFRICA Lebanon - Military action continues apace after arrival of UN observers. Some army officers considering coup to put Shihab into presidency. Communal clashes continue on Cyprus. Demonstrations against foreigners pos- sible in both Greece and Turkey where governments are under heavy pressure, 0 Japan - Prime Minister Kishi tries to limit opportunities for factional disputes in new cabinet. � Moroccan and Tunisian leaders to meet on 16 June; Algerian rebel leaders in Cairo state they will join discussions. IIL THE WEST De Gaulle under increasing rightist pressure in France to form a "gov- ernment of public safety." Conces- sions to right would encourage Com- munist efforts to claim leadership of anti-Gaullists. Approved for Release: 2019/08/20 C03194458 \\\\ ''�\\\ \\"\\N \\\\\ \\\�\\.\\ \\\\\\Ns\\\\\\� "\\\X\ \\.\\ \\.\\\ \\\\��\\�\�., \XX\N� \X\ Approved for Release: 2019/08/20 C03194458 aLgt-INZel CENTRAL INTELLIGENCE BULLETIN 14 June 1958 DAILY BRIEF I. THE COMMUNIST BLOC Soviet summit tactics! Premier Khrushchev's letter of 11 June appears designed to set the stage for a Soviet demand that an early date be agreed on for a foreign ministers' meet- ing. The letter, which will probably soon be published, con- tains the thus far secret 5 May Soviet agenda proposals. It suggests that the USSR might not insist on including all its proposals on a summit agenda and probably would be will- ing to include all Western-propose pt Eastern Europe and German reunification. (Page 1) Soviet military activity! Soviet Long Range Air Force activities associated with Kutaisi annear to have ceased s of 31 Mav II. ASIA-AFRICA *Lebanon! The arrival of UN observers has not yet caused any slowdown in military action. The rebel force threatening the Beirut-Damascus highway has been driven back, while fighting has continued around the rebel stronghold in Tripoli. Some army officers are advocating that General Shihab take over as president and are considering a coup d'etat as a means to this end. (Page 2) (Map) \\\\\\\\\X\\\\\X\\\ 44: :44 \ww Approved for Release: 2019/08/20 C03194458 ' Approved for Release: 2019/08/20 C03194458\ Cyprus-Greece-Turkey: Greek and Turkish Cypriots continue to clash despite British efforts to control the situa- tion. In Greece, whgre the stability of the government It- sell may be threatened, popular anger and resentment against the Turks, British, and Americans raise the dan- ger of outbursts despite government restrictions. In Tur- key, popular emotions are being whipped up by continuing mass demonstrations, which the government is encourag- ing. At the same time, a cabinet crisis appears to be de- veloping with Prime Minister Menderes under heavy pres- totake a firm position on the Cyprus issue. (Page 4) Japan: Prime Minister Kishi has placed his _closest supporters in the major posts of his new cabinet to consoli- date his personal leadership. While he has included in- fluential factional leaders in the cabinet and in party posts, they will be in a poor position to hamper his policies. (Page 6) Morocco-Tunisia: Premier Balafrej and Deputy Pre- mier Bouabid will go to Tunis on 16 June, ostensibly to ratify the treaty of friendship and solidarity negotiated last March. This will be the first meeting between Moroc- can and Tunisian leaders since the advent of De Gaulle, and their discussions probably will be dominated by the Algerian problem. Algerian rebel leaders in Cairo state they will join the talks in Tunis. (Page 7) III. THE WEST France': Although the pressures on De Gaulle for the formation of a "true government of public safety" remain centered in Algeria, extreme rightist pressures in France are mounting. Pierre Poujade, leader of the antitax movement, 14 June 58 DAILY BRIEF ii Approved for Release: 2019/08/20 C03194458 A\-=Z\e: 2019/08/20 \-\\a\\\941\\\\\-\\x\\\\x\\sxxx ilaAL416�11.44 A has thrown in his lot with the French Committees of Public Safety, and retired air force General Chassin has announced the formation of his "Popular Movement of 13 May." These two leaders are demagogues rather than skilled organizers like Leon Delbecque. Any concessions by De Gaulle to rightist pressure will probably encourage the Communists In their efforts to make the party the rallying point for op- position to De Gaulle. (Page 8) 14 June 58 DAILY BRIEF iii SECRET 4,:44 Approved for Release: 2019/08/20 C03194458 Approved for Release: 2019/08/20 C03194458 I. THE COMMUNIST BLOC Khrushchev's Letter on a Summit Conference Premier Khrushchev's letter of 11 June to the lead- ers of the three Westernpowers follows recently renewed Soviet propaganda charges that the West is using the am- bassadors' talks to delay a summit conference. It is prob- ably intended to prepare the ground for a Soviet demand for an early foreign ministers' meeting. By including in the letter the detailed Soviet agenda proposals of 5 May and a strong denunciation of key Western counterproposals on Germany and Eastern Europe, the USSR is seeking to document its charges that the West is to blame for the lack of progress toward the summit and also to bring pressure on the West for concessions on an agenda. Moscow has recently intensified its propaganda charges of Western obstructionism and has publicized East Ger- man claims that Secretary Dulles had issued detailed in- structions on methods for blocking a conference, particular- ly the insistence on discussing Eastern Europe and German unification. The letter states that the USSR does not insist on dis- cussing all Soviet-proposed topics and indicates a probable willingness to discuss all Western topics except Eastern Europe and German unification, including methods of strengthening the United Nations- a subject rarely men- tio ed in previous Soviet notes. SECRET 14 June 58 CENTRAL INTELLIGENCE BULLETIN Page 1 Approved for Release: 2019/08/20 C03194458 Approved for Release: 2019/08/20 C03194458 Baniyas MEDITERRANEAN SEA -30-inch pipeline Tripoli Beiru Bayt ad Din� Sidon � Rashayaf' 1'. Nabi Uthman � alabalq,er." 0 N s..of..sr..s.� � * SRAEL 31- nch pipeline TO JORDAN & \SAUDI ARABIA 12-inch pipeline "-.16-inch pipeline -- Selected Roads 20 40 60 0514 80607 2 Approved for Release: 2019/08/20 C03194458 Approved for Release: 2019/08/20 C03194458 I Ji iJL4, z tL-t 1 NM, II. ASIA-AFRICA Lebanese Situation After heavy fighting, Lebanese security forces on 13 June pushed back jumblatt% Druze.rebel forces MoVing,toviard the Beirut-Dmascus road. Pro-Chamoun partisans com- manded by Mughabghab have re-entered the fight, and heavy losses are reported to have been inflicted on Sum- blatt's men. A new rebel thrust is expected from near the Syrian border along the Beirut-Damascus road. Heavy fighting is continuing in Tripoli. A number of senior Lebanese Army officers and rela- tives of army commander General Shihab are considering a coup d'etat which would bring the general to power as chief of state. Realizing that Chamoun would spurn any ultimatum to resign, the group envisages his arrest. Abd al-Aziz Shihab, recently resigned secretary general of interior and a party to the coup, has stated that Chamoun's arrest could be easily arranged, since the group controls the presidential guards. As for General Shihab, he now admits that he has the "presidential bug." While he is not inclined to run for the presidency constitutionally or to attempt a coup himself, he would not try to prevent one on his behalf. Meanwhile, he has been negotiating with certain tribes in the al Harmal region, apparently in an attempt to wean the tribesmen away from their alliance with pro-Chamoun partisans. Opposition quarters are said to be in "deep gloom" over the establishment of the UN watchdog group. Extremist lead- er Saib Salam has declared that he "considers the Security Council resolution irrelevant to our problem" and apparent- ly intends not to cooperate with the observers. All Cairo newspapers on 13 June carried a statement that "Lebanese nationalists have mobilized all their forces to achieve a de- cisive victory following the Security Council resolution." The government's tightening financial situation has led Lebanese officials to approach the Iraq Petroleum Company TOP SECRET 14 June 58 CENTRAL INTELLIGENCE BULLETIN Page 2 Approved for Release: 2019/08/20 C03194458 Approved for Release: 2019/08/20 C03194458 WI -LLIUI New, and the Trans-Arabian Pipeline Company for loans totaling $8,430,000. The companies will apparently refuse outright loans, but may devise a scheme to provide some aid in the form of accelerated transit fee payments. Before the Suez war, Lebanon received yearly transit fees amounting to about $3,900,000 from IPC and about $1,200,000 from Tapline. Lebanon apparently is also ready to seek aid from the US. Continuation of the crisis might undermine the stability of the Lebanese pound to such an extent that some form of stabilization fund would also be requested. TOP SECRET 14 June 58 CENTRAL INTELLIGENCE BULLETIN Page 3 Approved for Release: 2019/08/20 C03194458 Approved for Release: 2019/08/20 C03194458 rifts" Cyprus, Greek, Turkish Situation A mounting wave of communal violence on Cyprus is frustrating British attempts to restore order, and there are severe repercussions in Athens and Ankara. On 13 June, following receipt of the new British pro- posals, Greek Premier Karamanlis submitted his resigna- tion to King Paul, stating that his pro-Western policies had failed. The King refused to accept the resignation but fears that he cannot convince Karamanlis to carry on. As there is no other outstanding leader in the governing National Radi- cal Union, Karamanlis' withdrawal would throw the Greek political scene into chaos and probably would lead eventual- ly to a government by a leftist-oriented popular front or by a rightist dictatorship. Opposition leaders and the press, criticizing Karamanlis' "soft" policy, have demanded that Greece lodge an appeal with the UN Security Council since the government's action in taking the issue to the North Atlantic Council was "useless." Turkey is denounced for initiating the riots on Cyprus, Britain for partiality toward the Turks, and the US for failing to sup- port the Greek demand for self-determination. The govern- ment has issued instructions against demonstrations, which will be difficult or impossible to present if the present pace of violence continues on Cyprus. A small ray of hope lies in Archbishop Makarios' apparent willingness to examine in detail the new British plan for Cyprus. Greek Cypriot leaders on Cyprus appear inclined to accept the plan with modifications. Their acceptance would remove con- siderable pressure from the Karamanlis government. In Turkey, the situation is becoming more explosive as emotions are fanned by government-sponsored mass demon- strations throughout the country. Tank-su, ported troops with fixed bayonets are preventing violence uuring and follow- ing the demonstrations, but isolated incidents are a constant SECRET 14 Tune 58 CENTRAL INTELLIGENCE BULLETIN Page 4 Approved for Release: 2019/08/20 C03194458 Approved for Release: 2019/08/20 C03194458 taJ .1.4�...e.111. Le 1 danger. Ankara, with full knowledge of the British pro- posals, has shown no tendency toward easing its demand for the partition of Cyprus. Prime Minister Menderes is reported to be under heavy pressure, regarding the critical economic situation as well as Cyprus. A caucus of the incumbent Democratic party, in session since 10 June, is said to be voicing severe criticism of Menderes and Foreign Minister Zorlu, with 'a majority of the-deputies requesting Menderes to step down. Earlier speculation that three cabinet members includ- ing Minister of Agriculture Okmen would be dropped sug- gested that Menderes was about to purge his cabinet of all dissident elements, but he apparently overplayed his hand and aroused an intraparty revolt of major proportions. Okmen, who is a capable financial specialist and considered friendly to the United States, is regarded as a contender for the pre- miership. He was brought back into the cabinet following last October's elections, probably as a concession by Men- deres to the dissident element in the Democratic party. While criticism of the Menderes regime has reached an all-time high, the prime minister may again be able to out- maneuver his opposition. In a desperate effort to salvage his regime he may try to exploit inflamed emotions over Cyprus to divert popular attention from domestic political and economic problems. 6/I SECRET 14 June 58 CENTRAL INTELLIGENCE BULLETIN Page 5 Approved for Release: 2019/08/20 C03194458 Approved for Release: 2019/08/20 C03194458 Lt./1Ni I Ll Can Nage Nee New Japanese Cabinet The speed and decisiveness with which Prime Minister Kishi formed his new cabinet suggests that his ability to control the competing factions in his ruling party has in- creased as a result of the mandate he received in the 22 May election. While the cabinet is representative of all major party factions, Kishi's close supporters are in firm control of the major posts, including foreign affairs, finance, justice, and agriculture and forestry. Kishi, by appointing a political leader, his brother Eisaku Sato, as minister of finance broke a precedent of having financiers or bankers in this post. This should assure the cooperation arid support, which was previously lacking, of a vital ministry in the formulation and execu- tion of policies for Ia.panese participation in the economic development of foreign areas such as Southeast Asia. While the press has, as usual, expressed distrust of the new cabinet, business interests have welcomed it as likely to be one of the most stable in recent years. Kishi's assertion of his leadership appears to be a significant step toward reducing factional and political rivalries in the government. II a 14 June 58 CENTRAL INTELLIGENCE BULLETIN Page 6 Approved for Release: 2019/08/20 C03194458 Approved for Release: 2019/08/20 C03194458 NI' 1 L., LI 1 "%pi NNW Moroccan and Tunisian Governments to Confer in Tunis Moroccan Premier Balafrej and Deputy Premier Bouabid are scheduled to go to Tunis on 16 June at the invitation of President Bourguiba. Ostensibly they are to ratify the Treaty of Brotherhood and Reciprocity negotiated in Rabat in March 1957, but more probably their purpose is to confer on mutual problems arising from the continued Algerian war and the change in the French Government. An announcement from Cairo that a delegation of the Algerian National Liberation Front (FLN) would also be in Tunis raises the possibility that the FLN may take advantage of this meeting to consult both governments regarding the formation of an Algerian government as provided by the Tangier conference of North African parties. Probably, however, neither Morocco nor Tunisia is yet willing to risk the inevitable repercussions in relations with France which would be caused by sanc- tioning an Algerian government at this time. The Tunisian Government fears French efforts to play the Moroccans and Tunisians off against each other and prob- ably will continue to press Morocco for a united front vis-a-vis France. The Moroccan Government, which has lagged behind Tunisia in backing Algerian independence, now appears con- vinced of the need for policy coordination and in the future seems likely to follow the general lines of Bourguiba's policy toward France and Algeria. 14 June 58 CENTRAL INTELLIGENCE BULLETIN Page 7 Approved for Release: 2019/08/20 C03194458 Approved for Release: 2019/08/20 C03194458 Lit, It La I I I I. THE WEST Rightist Pressures on De Gaulle Mounting in France While the main impetus for the formation of a "true government of public safety"--the elimination of the pres- ent system of parties and politicians--is still centered in Algeria, similar rightist pressures for changes are mount- ing in France. Poujade, rightist leader of the small shopkeepers, has decided to throw in his lot with the French Committees of Public Safety, and retired air force General Chassin has an- nounced the formation of the "Popular Movement of 13 May." These developments may result in more demagoguery than effective organization. The personal political standing and organizational strength of Poujade have declined sharply since 1956. Chassin is characterized as a very energetic, impulsive individual; a Ministry of Interior official stated In late May that his following was mainly composed of scattered small groups. There is growing evidence of liaison between rightists in France and in Algeria. Pierre Laguillarde, member of the Algeria committee, stood by Chassin at the latter's press conference. Poujade stated that his committee would work in liaison With the Algiers committee. Leon Delbecque, one of the leaders of the Algerian revolt, recently said the 13 May action in Algeria was only the first phase of the revolu- tion aiming at the formation of a nationwide committee of public safety in France. Rightist efforts to mount a coordinated campaign in France for De Gaulle "to complete the revolution" may well facilitate the Communists' attempts to organize a broad anti-Gaullist front, particularly if De Gaulle should appear to be bending uxder rightist pressures. SECRET 14 June 58 CENTRAL INTELLIGENCE BULLETIN Page 8 Approved for Release: 2019/08/20 C03194458