CURRENT INTELLIGENCE WEEKLY SUMMARY

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CIA-RDP79-00927A002400020001-5
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S
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December 19, 2016
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February 24, 2005
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1
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August 13, 1959
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SUMMARY
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Approved For..Re ease 2006/11/13 : CURRENT INTELLIGENCE WEEKLY SUMMARY COPY NO. 5` OCI NO.4062/59 13 August 1959 O'A 7 is J.?, i '... ,~ "'_ -.--- - Y i CENTRAL INTELLIGENCE AGENCY OFFICE OF CURRENT INTELLIGENCE DIA and DOS review(s) completed. EN iAL Approved For Release 2006/11/13 : CIA-RDP79-00927AO02471 001-5 ;~,zF5J7 ~oNF1DET1AL Approved Fo Iease 2006/11/13: CIA-RDP79-0092M%02400020001-5 THIS MATERIAL CONTAINS INFORMATION AFFECT- ING THE NATIONAL DEFENSE OF THE UNITED STATES WITHIN THE MEANING OF THE EST'IOTTAGE LAWS. TITLE 13, USC, SECTIONS 793 AND 'i91, T11L TN,rj,NSM1S- SION OR REVELATION OF WHICH IN ANY MANNER TO AN UNAUTHORIZED PERSON IS PROHIBITED BY LAW. The Current Intelligence Weekly Summary has been prepared primarily for the internal use of the Central Intelligence Agency. It does not represent a complete coverage of all current situations. Comments and conclusions represent the immediate appraisal of the Office of Current Intelligence. Approved For Release 2006/11/13 : CIA-RDP79-00927A002400020001-5 Approved For Release 2006/1 DP79-00927 002400020001-5 13 August 1959 OF IMMEDIATE INTEREST EAST--WEST NEGOTIATIONS . . . . . . . . . . . . . . . . . Page 1 While denying that Khrushchev will try to "divide the world" with the United States during his forthcoming visit to Washington, Soviet propaganda continues to keynote the responsibility of the "two great powers" for relaxing international tensions. In Western Europe, speculation on the possibilities of a Moscow-Washington deal has sub- sided somewhat with the announcement of the President's plans for consultations in Europe beginning on 27 August. Moscow, for the most part, has confined any anti-Western comments to continued attacks on Adenauer as the princi- pal opponent of an East-West detente. . . . . . . . . . . . . . . . . . Page 4 The Castro regime in Cuba suppressed a large-scale conspiracy on 8-9 August, making hundreds of arrests. Evidence that Dominican agents were involved in the con- spiracy can be used by Castro to strengthen his case against his bitter foe, Dominican dictator Trujillo, and may be used to justify. further attempts to oust Trujillo. Meanwhile, Cubans have. been identified in the Nicaraguan rebel groups operating against the Somoza regime from Honduran and Costa Rican territory. Costa Rican President Echandi anticipates a new airlift of arms and men from Cuba to reinforce the Nicaraguan rebel groups now just inside the Costa Rican border. SITUATION IN LAOS . . . . . . . . , . . . . . . , , . . Page 6 The past week's lull in the fighting and a letup in monsoon rains have apparently permitted the government to reestablish control over a number of outposts in northern Laos. The army's generally poor performance, however, may have further undermined the government's tenuous authority in the affected areas. The defection of some troops of the recently integrated former Pathet Lao battalion will further reduce the army's prestige and probably embolden Communist partisans to risk new acts of violence. The bloc propaganda campaign is continuing at a high pitch, Statements from Hanoi strongly imply that the "armed popular uprising" in Laos will soon increase in scope and intensity. A Chinese Communist Foreign Ministry spokesman has said that "all activities of the US Govern- ment" menacing the security of Communist China would be i 0 FIDQ 1 6AXI Approved For Release 2006/11/13 : CIA-RDP79-00927A00240 1- THE WEEK IN BRIEF Approved ForIease 2006/119F}DP79-00927A 02400020001-5 CURRENT INTELLIGENCE WEEKLY SUMMARY 13 August 1959 PART I (continued) "firmly opposed." Both Peiping and Hanoi have taken the position that the Laotian crisis cannot be resolved by the UN, as the Geneva agreements are not UN sponsored. NOTES AND COMMENTS MIDDLE EAST HIGHLIGHTS . . . . . . . . . . . . . . . . . . Page 1 The Qasim regime in Iraq has further restricted the Communists' opportunities for wielding popular influence, by such measures as giving a more moderate tone to Bagh- dad radio. However, Qasim continues to take action only against individuals, rather than against the Communist party as a whole, An Arab League experts'meeting, includ- ing representation from Iraq for the first time in recent months, has rejected UN Secretary General Hammarskqjold's proposals for continued international support for the Palestine Arab refugees. AFRICAN CONFERENCE AT MONROVIA . . . . . 4 . . . . . . Page 2 The conference of nine independent African states and the Algerian provisional government, held in Monrovia early this month, adopted generally moderate resolutions on the Algerian situation. The involvement of African states in the Algerian problem is likely to deepen, how- ever, and to cause serious difficulties with France. The success of the delegates in achieving general agreement suggests that this meeting--one of several recent African diplomatic and nationalist gatherings--will give impetus to developing African unity and be reflected in coordinated efforts in the UN this autumn. FRANCE'S ALGERIAN POLICY . . . . . . . . . . . . . . . . . Page 3 The French Government is likely to become increas- ingly touchy regarding foreign pressure for a solution to the Algerian problem as the UN General Assembly session draws near and the results of the highly publicized Challe Plan for a military cleanup appear more and more incon- clusive, De Gaulle's prospective trip to Algeria from 27 to 30 August re-emphasizes France's preoccupation with the problem but is unlikely to signal any change in his plan for the gradual emergence of a French Algeria with a large measure of local autonomy. SECRET ii Approved For Release 2006/11/13 : CIA-RDP79-00927AO02400020001-5 THE WEEK IN BRIEF SECRET Approved For Release 2006/11/13 : CIA-RDP79-009002400020001-5 TMW CURRENT INTELLIGENCE WEEKLY SUMMARY 13 August 1959 PART II (continued) SPANISH-MOROCCAN RELATIONS . . . . . . . . . . . . . . . . Page 4 Last April's improvement in Spanish-Moroccan relations may be impaired by Rabat's apparent determination to harass the Spaniards into accelerating their troop withdrawals from northern Morocco. Madrid recently agreed to make a sizable reduction in its troop strength there. This agree- ment is likely to increase irritation among those Spanish military leaders who view any military withdrawals from the area as an indication that General Franco no longer considers their special interests of prime importance. The Kenya Government's authorization of nationwide political parties in late July has stimulated political activity in the British colony. Two new parties formed from the ranks of African legislators are pressing for constitutional changes in anticipation of the constitu- tional conference to be held in London early next year. The party led by Tom Mboya will probably emerge as the primary spokesman for Kenya's Africans. PEIPING'S INTEREST IN AFRICAN NATIONALISM . . . . . . . . Page 6 e p ng is aiso promoting govern- ment-to-government contacts with the newly independent countries of Africa, in the hope of eventually establishing diplomatic relations. Chinese Communist propaganda to Africa seeks to form a camaraderie of the "exploited"-- with the implication that Peiping is a model of the appro- priate path for the underdeveloped areas. . . Page 5 . Page 7 Peiping is sending a government good-will delegation to Indonesia as part of its effort to ward off any deteri- oration of relations with Djakarta. Indonesian officials have expressed a growing fear of Communist China, and Peiping has been worried by recent legislation in Indonesia which discriminates against Overseas Chinese. The leader of the delegation will probably allude to Communist China's recent loan as evidence of his country's friendship. SECRET iii Approved For Release 2006/11/13 : CIA-RDP79-00927A002400020001-5 THE WEEK IN BRIEF Approved Fox-Release 2006/11/13 : CIA-RDP79-009 7WO2400020001-5 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 13 August 1959 PART II (continued) PEIPING CALLS FOR GREATER ECONOMIC EFFORT . . . . . . . . Page 8 The official Peiping People's Daily, apparently reflecting a recent re-eva uaI tion of economic prospects by party leaders, says the situation is "extremely favor- able" to the fulfillment of plans to achieve another "leap forward" this year. All that is needed, the daily says, is to overcome the "rightist conservative" tenden- cies now emerging among party cadres so that the masses can be "activated" to a new upsurge of effort. The edi- torials, which appear to be a reaffirmation of Mao Tse- tung's hurry-up economic policies, are probably the open- ing gun in an effort to regain some of the recently lost momentum< F_ I THE ECONOMY OF EASTERN EUROPE AT MIDYEAR . . . . . . . . . Page 10 High rates of industrial growth during the first half of 1959 indicate that most of the Eastern European satellites will probably achieve their uniformly high production goals for the year. This year's bad weather will reduce agricultural output, and pressures on the people to work harder may cause unfavorable popular reac- tions. However, these and other limiting factors are not expected to slow the pace of over-all growth substantially. HUNGARIAN AGRICULTURAL POLICIES CAUSING PARTY DIFFICULTIES . . . . . . . . . . . . . . . . . . . . . . . Page 11 Poor organization within newly formed collectives in Hungary, peasant opposition, and inadequate propaganda work by the party are further evidence of weaknesses in the rural party organizations. The situation has prompted the regime to emphasize "consolidation" of gains already made rather than formation of new collectives. This shift in tactics, perhaps abetted by Khrushchev's recent sanction of a moderate approach to collectivization in Poland, may cause a renewal of policy controversies in the top party levels and lead to efforts by moderates to ease unrecon- structed Stalinists: out of positions of responsibility. UNITED NATIONS PARTICIPATION IN FUTURE DISARMAMENT NEGOTIATIONS . . . . . . . . . . . . . . . . . . . . . . . Page 12 Secretary General Hammarskjold anticipates opposition from most UN members to the Soviet-initiated proposal of the Geneva foreign ministers' conference for a ten-member disarmament group--five Western and five Soviet--without strong ties to the United Nations. He believes the General Assembly will object to removal of disarmament negotiations from the jurisdiction of the UN and will discuss the whole question heatedly at the session opening on15 September. He SECRET iv Approved For Release 2006/11/13 : CIA-RDP79-00927AO02400020001-5 THE WEEK IN BRIEF Approved Felease 2006/11/13 : CIA-RDP79-009,002400020001-5 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 13 August 1959 PART II (continued) has suggested certain procedural steps designed to give the UN some role in disarmament talks and thus make the proposal more palatable to the majority of UN members. CAMBODIAN - SOUTH VIETNAMESE RELATIONS . . . . . . . . . Page 13 Relations between Cambodia and South Vietnam have taken on an aura of cordiality following the recent meeting of Premier Sihanouk and President Diem in Saigon. Agreement has been reached on several issues that have long caused friction between the two countries. Sihanouk advocates a "safe" neutrality policy because of his belief that a Communist victory is inevitable in the East-West struggle; this remains a basic cause of regional dissen- SINGAPORE GOVERNMENT LAUNCHES '"MALAYANIZATION" PROGRAM . . Page 14 The left-wing government of Singapore has embarked on a highly publicized program to "Malayanize" Singapore's predominantly Chinese population in an effort to improve prospects for an eventual merger with the Federation of Malaya. A complete overhaul of the educational.system.-is planned, with the ostensible goal of making Malay the national language and of "molding a national character." There probably is little genuine support for the, program either among Chinese citizens--who constitute more than 75 percent of the opulation--or among political leaders. PAKISTAN ACTS TO PREVENT DEVELOPMENT OF OPPOSITION . . . . Page 15 The Pakistani military regime's order of 7 August effectively barring opponents of the regime from public office illustrates President Ayub's intention to retain full authority while establishing a facade of constitu- tional democracy. Local elections are scheduled to begin in October, but only candidates acceptable to the govern- ment are likely to be permitted to run. Rumors of personal rivalries within the military leadership suggest Ayub may also have to deal with some dissension within the regime. ARGENTINE LABOR DIFFICULTIES . . . . . . . . . . . . . . . Page 16 Peronista attempts to promote a general strike in Argentina on 11 August led to the shutdown of major indus- tries but failed to gain general support. The anti- Peronista unions, although also critical of government labor policies, denounced the strike as politically moti- vated. Labor is still strongly opposed to the government's SECRET Approved For Release 2006/11/13 : CIA-RDP79-00927AO02400020001-5 THE WEEK IN BRIEF SECRET Approved Fnrelease 2006/11/13: CIA-RDP79-009002400020001-5 CURRENT INTELLIGENCE WEEKLY SUMMARY 13 August 1959 PART II (continued) austerity measures, and further strike moves are likely. The government is seeking legal means of more effectively curtailing Communist activities. PATTERNS AND PERSPECTIVES DE GAULLE'S VIEWS ON EAST-WEST RELATIONS . . . . . . . . . Page 1 De Gaulle considers Soviet Communism a transient phenomenon. He expects that Russia, fearing Chinese. expansionism and under internal pressures for a higher standard of living, will eventually cooperate with the West. He apparently envisages the emergence of four major power blocs--Sovieet, Chinese, "Anglo-Saxon," and a "Eur- african" group led by France. While wanting a solid West- ern stand on such immediate issues as Berlin, he seems convinced that even at present a Continental European bloc must exercise a moderating role between the US and the USSR. THE SOCIALIST PARTY OF JAPAN . . . . . . . . . . . . . . . Page 4 The opposition Socialist party in Japan faces its annual convention, expected in September, rent by ideo- logical and factional conflicts. Socialist defeats in recent local and upper-house elections have brought open criticism of party leaders by both right- and left-wing elements and encouraged right-wing leaders to challenge the leftist trend in party policies. While Socialist prospects for coming to power remain dim, the leftist- dominated party is nonetheless capable of seriously har- assing Japan's present conservative government. INTERKOLKHOZ ENTERPRISES IN THE USSR . . . . . . . . . . . Page 7 The Soviet regime is continuing to push the organiza- tion of interkolkhoz enterprises. These enterprises, mostly construction units, are joint undertakings of several collective farms--or kolkhozes--operating with capital investment contributed by each farm from resources not subject to distribution among the members. The new organizations are an excellent device for progressively blurring the distinction between state property and the cooperative property of collective farms--thus serving political as well as economic ends. The regime will probably elaborate on the role and scope of the interkol- khoz units at the next party lenum, scheduled for Novem- ber. F7 - SECRET Approved For ReleaseTh6/WMIS : SAN-00927A002400020001-5 Approved Fo elease 2006/11kSEc DP79-00902400020001-5 CURRENT INTELLIGENCE WEEKLY SUMMARY 13 August 1959 PART III (continued) REPLACEMENT OF SOVIET AMBASSADORS . . . . . . . . . . . . Page 11 The Soviet Government has during the past three months shifted eight of its 53 ambassadors and has named an additional deputy foreign minister to serve under Gromyko. In most cases the shifts apparently were made to improve relations with the host country, and do not signal any changes of direction in Soviet foreign policy. SECRET vii Approved For Release 2006/11/13 : CIA-RDP79-00927AO02400020001-5 THE WEEK IN BRIEF Approved Fo lease 2006/1ft jRDP79-009202400020001-5 13 August 1959 Moscow is continuing its campaign to create a favorable atmosphere for the forthcoming Eisenhower-Khrushchev exchange of visits. The volume of So- viet radio commentaries on the cipal opponent of an East-West visits last week exceeded that detente. devoted to the foreign minis- ters' conference in every week except the initial one. Par- ticular emphasis has been on creating the impression that in planning the exchange of visits the "two great powers" have recognized their primary responsibility in bringing about a relaxation of interna- tional tensions. caused a considerable drop on the New York stock exchange in the value of shares in companies "concentrating on the manufac- ture of arms," anti-Western com- ments have, for the most part, been confined to attacks on Chancellor Adenauer as the prin- In his press conference in Moscow on 5 August Khrushchev said he does not consider the :meetings with President Eisen- hower a substitute for a con- ference of heads of government, which the USSR still considers "useful and necessary." A typical commentary stated on 10 August that "the whole world realizes that the thaw in American-Soviet relations is a thaw in the entire internation- al climate," Another stated that "a safe peace depends chief- ly on normal and friendly rela- tions between the Soviet Union and the United States." soviet propaganda has asserted further that "public opinion in all countries has shown tremendous interest in the news." Soviet commentators' emphasis on the ,groundlessness of fears that' Eisenhower and Khrushchev will arrive at an agreement against the interests of the smaller countries may have been calcu- lated, in fact, to play on just such suspicions. Except for the allegation that news of the visits has Mikoyan Visit to Latin America Moscow has apparently launched a trial balloon con- cerning a possible visit by Mikoyan to Latin America. Un- confirmed press reports, one attributed to Radio Moscow, stated on 11 August that Soviet Deputy Premier Mikoyan would visit Latin America "within the next few months." No informa- tion is available concerning any official invitations, and Western stations monitoring Mos- cow broadcasts heard no such announcement. The report coin- cides with favorable Latin Amer- ican reaction thus far to the Eisenhower-Khrushchev visits. Moscow may actually be try- ing to ascertain Latin views on such a visit by Mikoyan, and to elicit invitations from the SECRET Approved For Release 2006/11/13 : CIA-RDP79-00927AO02400020001-5 PART I OF IMMEDIATE INTEREST Page 1 of 7 Approved For Release 2006/Atpot p-RDP79-004002400020001-5 CURRENT INTELLIGENCE WEEKLY SUMMARY 13 August 1959 Latin American governments. The action would be in line with bloc activity in recent months aimed at increasing trade and economic ties with Latin Ameri- ca and undermining US prestige and policy in the area. Mikoy- an could visit unofficially those countries with which the USSR maintains diplomatic re- lations--Argentina, Mexico, and Uruguay. Western Europe Western European atten- tion has turned toward Presi- dent Eisenhower's forthcoming visits _to Bonn, London, and Paris and their significance in relation to the Khrushchev trip to the United States. West German officials, al-- though preferring aWestern sum- mit meeting, showed great re- lief at the President's decision to include Bonn in his itiner- ary. The semiofficial Diploma- tische Korres pondenz observed that the visit should silence all talk about the beginning oi.' West Germany's "isolation." Bonn officials feel the visit will reaffirm the ties binding West Germany to the Western al- liance and demonstrate to the USSR Western unity on Berlin and the German question. Various government and Christian Democratic Union of- ficials nevertheless continue to fear possible American con- cessions detrimental to German interests. Bundestag Foreign Affairs Committee Chairman Fur- ler has warned that talks in- volving only the two great pow- ers inevitably entail some risk to those not participating. Initially heavy French press discussion of a possible Moscow-Washington deal at the expense of Western Europe has fallen off. A government state- ment on 12 August that Paris considered that only Soviet- American relations could be dealt with in the Eisenhower- Khrushchev talks nevertheless underscores French official sen- sitivity regarding any sugges- tion that Eisenhower has a man- date to speak for Paris. Ital- ian Premier Segni's ire over the possibility that the Presi- dent would "snub" Italy while going to Bonn and Paris has been soothed by the President's plan to see Segni in Paris. Several other NATO delega- tions have indicated displeasure over the planned meetings as well as hope that Secretary Herter will meet with the NAC before the Khrushchev visit. In London there has been virtually no indication of dis- trust or feeling that the United States might negotiate behind SECRET Approved For Release 2006/11/13 : CIA-RDP79-00927A002400020001-5 PART I OF IMMEDIATE INTEREST Page 2 of 7 Approved F rcRelease 2006/11/13 : CIA-RDP79-009002400020001-5 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 13 August 1959 Britain's back. Opposition leader Gaitskell, while noting that Labor's "shadow" foreign secretary, Aneurin Bevan, had privately raised such a question, told the American Embassy that few Labor supporters would share Bevan's doubts. Announcement of the Eisenhower-Khrushchev ex- change has eased pressures in Britain for an immediate four- power East-West summit meeting, The American Embassy antici- pates, however, that as the time approaches for general elec- tions--probably this fall-- Prime Minister Macmillan will revive the summit issue. Even after the elections, British public opinion and Macmillan's personal conviction can be ex- pected to keep the subject a- live. Test Ban Talks Moscow's announcement on 10 August, officially accepting the 10 July report of the tech- nical working group on the de- tection of high-altitude nuclear explosions, was probably de- signed to create the impression of progress at the test ban talks during the hiatus in broader East-West negotiations. Khrushchev's reply, pub- lished on 10 August, to a letter from the European Federation Against Atomic Armaments stated that the Soviet Union "is ready to accept the most solemn obli-? gation not to be the first to conduct any further tests of nuclear weapons." This state- ment was probably calculated to gain the maximum propaganda ad- vantage from talk in the United States of resuming testing after 31 October. Soviet propaganda has called Senator Anderson's admonition--that Soviet inflexi- bility at Geneva might force the US to resume testing--an example of the "increasing evidence" that the United States is pre- paring to renew its test program in spite of the negotiations in Geneva. Khrushchev's letter further claimed: "Unfortunately, I do not see any reason to be- lieve that at this time the Western powers will show more readiness to put an end to nu- clear tests." In a less critical reply, published on 12 August, to a memorandum from the World Feder- ation of Scientific Workers, Khrushchev declared that the United States and Britain must show the same "desire to co- operate and aspiration to attain the goals of the conference" as the Soviet Union has demonstrated, if agreement is to be reached. An article in Izvestia on 12 August charged that Anderson statement is related to efforts to poison the international atmosphere and counteract "warm- ing currents" inspired by the announcement of the Eisenhower- Khrushchev visits. The Soviet delegation at Geneva has continued to insist on its proposal for an annual quota for on-site inspections which would give the USSR a two- to-one advantage over the United States and Great Britain. Its position on staffing of the con- trol posts has remained unchanged. Concurred in by 25X1 OS I) SECRET Approved For Release 2006/11/13 : CIA-RDP79-00927A002400020001-5 PART I OF IMMEDIATE INTEREST Page 3 of 7 Approved FQrelease 2006/11/13 : CIA-RDP79-0092002400020001-5 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 13 August 1959 THE CARIBBEAN SITUATION A large-scale conspiracy against the Castro government was suppressed with hundreds of arrests on 8 and 9 August. Evi- dence that Dominican agents were involved in the conspiracy can be used by Castro to strenghthen his case against his bitter foe, Dominican dictator Trujillo, and may be used to justify fur- ther attempts to oust Trujillo. Meanwhile Cubans have been identified in the rebel groups operating against the Somoza The Caribbean Area BAHAMA Havana ISLANDS q~ fj .. ~-Gqrt'e..Ia onduras .. _* Tumirrn Cuba,-''-, 'Dominican JAMAICA H Trujillo eico ANTIGUA p?GUADELOUPE MARTINIQUE o yBARBADOS 25X1 25X1 regime of Nicaragua from Hon- duran and Costa Rican. territory. SECRET Approved For Release 2006/11/13 : CIA-RDP79-00927A002400020001-5 PART I OF IMMEDIATE INTEREST Page 4 of 7 Approved F Release 2006SL' EIp-RDP79-OO92A002400020001-5 CURRENT INTELLIGENCE WEEKLY SUMMARY 13 August'1959 The arrests of suspected plotters in Cuba have reached more than a 'thousand, accord- ing to unofficial Cuban sources. At first the arrests were chiefly of armed forces per- sonnel who had been held over from the Batista regime and of large landowners who'had active- ly.opposed Ca stro'.s.agrarian re- formrprogram. Later arrests probably included other groups. Castro probably still feels committed to force the ouster of Trujillo,and evi- dence of Dominican implication in the Cuban conspiracy will strengthen the Cuban case against Trujillo at the inter- American foreign ministers' conference. Attempts Against Nicaragua Cubans have been identi- fied among the rebels that have been trying without success to mount a revolt against the Somoza regime. in Nicaragua, and some of the rebel g.'oups are believed to have been sup- plied with weapons from Cuba. Costa Rican President Echandi is making every effort, within his country's limited military capacity, to enforce Costa Rica's neutrality,which is compromised by the presence of an estimated 200 anti-So- moza rebels just inside the border. These rebels made a foray into Nicaragua on 3 August and threaten further incursions. They are being supported by influential Costa Rican political figures of the opposition. On 10 August Echandi or- dered an estimated 180-man Costa Rican military force in the border area to disperse the rebels, returning their fire if necessary. Echandi informed the American Embassy on 11 August that two Costa Rican legislators and two pilots are in Cuba organizing an airlift of men and arms to reinforce the Nicaraguan rebels. He asked Guatemala for two fighter planes to help prevent any aircraft used for this purpose from landing in Costa Rica, but this request was declined by the Guatemalan Government. the rebel cause. The small rebel group that entered Nicaragua from Honduras early this month has been almost completely wiped out by the Nicaraguan. armed forces, and there is no indication that the public agitation over recent student killings in Nicaragua has led to popular support for SECRET Approved For Release 2006/11/13 : CIA-RDP79-00927A002400020001-5 PART I OF IMMEDIATE INTEREST Page 5 of 7 Approved F SECRET elease 2006/11/13 : CIA-RDP79-009002400020001-5 CURRENT INTELLIGENCE WEEKLY SUMMARY 13 August 1959 The Laotian Army claims to have reoccupied several posts in northeastern Laos taken by the Communists in the initial phase of the fighting, and a break in the monsoon rains has permitted the airlift of sup= plies to troops and civilians. However, the US army attache, who visited Sam Neua on 9 Au- gust, says that the airfield is rapidly becoming unusable be- cause of the continued heavy rains and lack of proper main- tenance. Loss of the field would leave the province depend- ent on air drops and movement over jungle tracks. . The army's poor performance during the initial phase of the upheaval may have further un- dermined the govern- ment's tenuous au- thority in the af- fected areas. Commu- nist subversive ef- forts in the two provinces had al- ready met with con- siderable success be- fore the insurgency began. The Laotian Army's already di- minished prestige will further dwindle when it is becomes known that 114 men out of a total of about 750 in the re- cently integrated former Pathet Lao battalion escaped on 8 August from their encampment near Luang Prabang and are heading toward Sam Neua Province. This latest evidence of army ineptitude, which Laotian officials are attempting to keep secret, will probably embolden Communist cadres to risk new acts of violence against the regime. There is as yet no firm evidence that any of the ap- proximately 25,000 North Viet- namese troops deployed along the Laotian border are directly involved in the conflict 25X1 ere have SECRET NORTH. VIETNAM SOUTF(\ AIETNAM SEA Approved For Release 2006/11/13 : CIA-RDP79-00927AO02400020001-5 PART I OF IMMEDIATE INTEREST Page 6 of 7 Approved Folease 2006/11/13: CIA-RDP79-009202400020001-5 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 13 August 1959 been reports that troops are being flown from Hanoi to Dien jtne transport o small numbers of troops would not necessarily be un- usual, although it is possible that this activity may be con- nected with the situation in Laos. It is likely that the North Vietnamese are limiting their aid to the insurgents to logistical support and clandes- tine direction at this time, although their 270,000-man army gives them the capability to intervene actively and in force at any time. Laotian officials have re- jected Britain's proposal that the UK and the USSR, as cochair- men of the 1954 Geneva agree- ments, request the secretary general of the United Nations to sent a "fact finder - media- tor"'to Laos. They are opposed to UN mediation of the current crisis, but appear to be con- sidering a request for a UN ob- server in order to demonstrate that they do not fear an on-the- spot investigation. The Communist bloc con- tinues strongly to attack the US as the power behind the scenes in Laos. Both Hanoi and Peiping profess to see the aim of US activities, particu- larly the introduction of a mil- itary training mission, as a "plot" to bring Laos into SEATO, which they term a "threat to China and Vietnam." On 8 Au- gust the North Vietnamese vice minister of national defense stated that Hanoi would regard military intervention in Laos by any foreign country as a "di- rect threat to the security" of North Vietnam, to which it could not "remain indifferent." The Chinese Foreign Ministry has also stated that "all ac- tivities of the US Government and the Laotian authorities vio- lating the Geneva agreements and creating tension in Indo- china and further to menace the security of China will certain- ly be opposed by the Chinese government and poeple," In discussing measures to reduce tension in the area, both Peiping and Hanoi have taken the position that the United Nations lacks the competence to settle the issue, as the Geneva agree- ments were not UN sponsored. The Chinese Foreign Ministry state- ment of 12 August goes so far as to state that to bring the Laotian "question" before the UN would in itself be a viola- tion of the Geneva agreements. As an alternative, Peiping as- serts that tension in Laos can only be reduced by the withdraw- al of all American military per- sonnel and arms, the abolition of all "US military bases," the return of the International Con- trol Commission (ICC), and the correct implementation of the Geneva and Vientiane agreements. Although Moscow has not giv- en the Laotian situation as much publicity as either Hanoi or Peiping, it continues radio and press support to Communist claims, with particular emphasis on demands for reactivation of the ICC in broadcasts to South Asian listeners. On 7 August Izvestia described events in Laos as "fraught with the dan- ger of grave military clashes" which might spread to "a whole line of Southeast Asian coun- tries." Soviet broadcasts have maintained pressure on London stating that Britain, as co- chairman of the Geneva agree- ments, must participate if a "peaceful settlement" of the Laotian problem is to be achieved. I 25X1 SECRET Approved For Release 2006/11/13 : CIA-RDP79-00927AO02400020001-5 PART I OF IMMEDIATE INTEREST Page 7 of 7 Approved F elease 2006/11/13 : CIA-RDP79-009002400020001-5 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 13 August 1959 NOTES AND COMMENTS MIDDLE EAST HIGHLIGHTS Iraq The Qasim regime does not appear to have slackened its determination to punish and con- trol Communist elements which have encouraged internal dis- order. The American Embassy in Baghdad believes Qasim has been so alarmed and angered by the Communists that he now will not only check their further attempts to increase their power but will also take concrete steps to reduce present Commu- nist influence. Baghdad radio on 10 August attacked the for- eign policy attitude of the Communist party press, stating that the Communists' articles do not reflect the foreign policy of the regime and hint- ing broadly that if the press persists'too strongly in its line, it could be suppressed for harming Iraq's relations with other states. The tone of the "national- ist" press in Baghdad reflects steadily growing confidence on the part of the anti-Commu- nists, who have even criti- cized Baghdad radio for giving too much Communist-slanted news. However, the normally televised activities of Colonel Mahdawi's "people's court," which it was hoped might soon cease, appar- ently will be given a new fillip by the trial of Brigadier Tabaq- chali, commander of the army's Second Division at the time of the Mosul rising last March. Mahdawi, who still acts as a Communist tool although he is Qasim's brother-in-law, aids the Communist cause by distracting public attention to alleged "im- perialist" or Nasirist plots and the evils of the Nuri regime. The American Embassy warns that Qasim apparently is still unconvinced that Communist ideology threatens Iraq's future in any way which he, as a popular leader, cannot meet and overcome. Qasim continues to assert that he will never act against "par- ties," but only against individ- uals. Arabs and Palestine One of the first steps to- ward bringing Iraq back into the Arab community was taken when an Iraqi representative joined "experts" from the other Arab states in Beirut to consider UN Secretary General Hammarskjold's report, issued last June, on future support for the Pales- tine Arab refugees. The sec- retary general, faced with the termination in 1960 of the oper- ating charter of the United Nations Relief and Works Agency for Palestine.(UNRWA), has urged that UNRWA be continued within the context of the economic development of the Near East as a whole, and has suggested that the relief and rehabilita- tion funds, the bulk of which have been contributed by the United States, be channeled through-the governments of those Arab states where the refugees are now residing. To the Arabs, Hammar- skjold's proposal smacks of an- other "imperialist-Zionist plot" to integrate the refugees into their host countries rather than maintain them in a separate status pending the unlikely event that Tel Aviv will agree to implement the UN resolution of 11 December 1948, which calls for either repatri- ation or compensation of the refugees. On opposition to Hammarskjold's proposal, all the Arabs can unite, and the significance of the Beirut meeting may turn out to be as much that it provided a forum SECRET Approved For Release 2006/11/13 : CIA-RDP79-00927AO02400020001-5 PART II NOTES AND COMMENTS Page 1 of 16 Approved Forrlease 2006/11/JkWt7PP79-0092702400020001-5 CURRENT INTELLIGENCE WEEKLY SUMMARY 13 August 1959 for Iraqis, Jordanians, the UAR and other estranged parties to get together, as that it summoned the Arabs to close ranks against the secretary general's report. The views of the Arab "experts" will receive formal endorsement at a conference of Arab League foreign ministers, tentatively scheduled for 1 September in Casablanca. The Moroccan city was chosen in- stead of Cairo, the usual meet- ing place, in an effort to re- lieve the impression that the league machinery is dominated by the UAR and to make it easier for "dissident" members --the Jordanians, Iraqis, and Tunisians--to attend. In the view of Iraq, however, the choice of Casablanca is only slightly less unhappy than Cairo, since the Iraqis had extended an early invitation to have the meeting in Baghdad. The Israelis have continued to concentrate most of their attention on the problem of the Suez Canal, and have baffled the Cairo authorities by failing to take up the UAR's offer to al- low the impounded Danish vessel Inge Toft to return to the Mediterranean with its cargo. Tel Aviv, which still does not seem to have made up its mind whether or how to take the canal issue to'the United Nations, may wish to let the matter simmer rather than compromise its case by ordering the ship to leave Port Said. Foreign Minister Meir re- ported to the Israeli parlia- ment's foreign affairs commit- tee last week that recourse to the UN seemed the only avenue left to the government. Mean- while Prime Minister Ben-Gurion is taking another vacation, offi- cially announced as a rest in a hospital but possibly a Mediterranean cruise. There has been no perceptible shift meanwhile in Iran's stand against the Soviet propaganda campaign. Yemen the Imam,'s absence. The Imam of Yemen arrived back in his'country on 10 August, following an apparently incon- sequential shipboard meeting with Nasirs His return was ac- companied by a denunciation by the Yemeni radio of "imperialist rumormongers" who had spread re- ports that there would be dis- agreements between the Imam and 25X1 Crown Prince Badr, who has head- ed a "reform" administration in The second conference of independent African states--the first was at Accra in April 1958--was held in Monrovia, Liberia, from 4 to 8 August. The primary topic of discussion was the Algerian situation. Al- though the resolutions passed were generally moderate in tone, the sympathy demonstrated for the rebels suggests the African nations will become increasing- ly involved in the Algerian problem. Such involvement would severely strain their relations with France, which has already SECRET PART I I Approved For ReleaseN2 VTE 0M 11ANU cJ p 00927A002400020~a 1 5 2 of 16 Approved For lease 2006/1 C ;,RDP79-0092WO2400020001-5 CURRENT INTELLIGENCE WEEKLY SUMMARY 13 August 1959 indicated it intends to sever diplomatic ties with nations recognizing the Algerian pro- visional government. The increasing frequency of African meetings--particu- larly where both Arab and tropi- cal African states are repre- sented, as at Monrovia--suggests that African unity is develop- ing and will be reflected in the United Nations by a more influential bloc, united by its opposition to Western co- lonialism, The representatives at Monrovia--generally of minis- terial rank--from nine inde- pendent African states and the Algerian provisional govern- ment resolved that France should recognize the right of the Algerian people to self- determination leading to in- dependence. They called on Paris to end hostilities, with- draw its troops from Algeria, and enter into negotiations with the rebel government. The individual African states were asked to prepare for the forth- coming debate in the United Na- tions, to continue diplomatic action in behalf of the rebels, and to give material aid to the Algerian nationalists. The anticipated increase in ties between the African states and the Algerian rebels is likely to cause serious dif- ficulties with France. French- Ghanaian relations are already tense following Accra's recog- nition of the rebels in July. The Guinean delegation to the conference announced that Con- akry would consider an exchange of diplomatic representatives with the Algerian government. Liberia, resentful of consider- able French diplomatic pressure and subjected to strong demands at the conference, reportedly will announce recognition in several weeks. Ethiopia, which values French support in the Somali problem, is likely to be the only African state that does not intend to recognize the Algerian rebels, but Addis Ababa will probably support the Asian-African bloc in the UN debate this autumn. The conference gave a sym- pathetic hearing to petitioners who attacked British rule in Uganda, the racial. and political policies of the white-settler government of the Federation of Rhodesia and Nyasaland, and Bel- gium's denial of rapid political evolution to its trust territory of Ruanda-Urundi. In addition, exiled nationalist extremists from the French trust territory of Cameroun received a favorable reception to their plea for a rehearing in the UN this autumn. 25X1 The French Government is likely to become increasingly touchy regarding foreign pres- sure for a solution of the Al- gerian problem as the UN Gen- eral Assembly session draws near and the results of the highly publicized Challe plan for a military cleanup appear more and more inconclusive. De Gaulle's prospective trip to Algeria from 27 to 30 Au- gust--his first visit there since becoming President in January--re-emphasizes France's preoccupation with the problem, but is unlikely to signal any change in his plan for the grad- ual emergence of a French Al- geria with a large measure of local autonomy. De Gaulle's policy is based on the hope that France can win over the Algerian people so that they will choose to remain within the framework of French political institutions. To do this, he envisages that mili- tary pacification of the coun- try will continue until the rebels. negotiate a cease-fire without political conditions or foreign intermediaries. This SECRET PART 1 1 Approved For Release JOC(f151/1J&- %pl 7_ 00927A00240002000 p 1-5 3 of 16 Approved For lease 2006/11/13 : CIA-RDP79-0092 AZ 02400020001-5 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 13 August 1959 would permit France to step up its efforts to attain the rap- id social and economic devel- opment of Algeria and to en- courage the evolution of a Moslem political elite to carry on local government and protect the distinctive culture of the area. The French press in late July termed General Challe's drive to clear the rebel strong- hold in the coastal mountain range east of Algiers a final great offensive to win the war. Recent communiques, however, emphasize that this may take months to complete. Premier Debre inspected field opera- tions during his 6-8 August trip to Algeria, and De Gaulle during his own visit probably will also be concerned with the progress of this campaign. It is rumored Paris plans an announcement of "promising de- velopments" in an effort to persuade UN members to postpone action on Algeria for another year, and De Gaulle may seek first-hand information on which to base such a statement. Political moderates with- in the Algerian provisional government appear to be losing ground to more militantly anti- French elements. Premier Fer- hat Abbas, who has sought a ne- gotiated solution for the Al- gerian war which would hold out the prospect of eventual independence, is reported vir- tually without influence in the rebel movement; the de facto leader, Deputy Premier and De- fense Minister Belkacem Krim, is believed to incline toward the views of rebel military commanders who desire to con- tinue the war at any price rather than negotiate on terms favorable to France. Despite recent rebel mili- tary difficulties, the cause of Algerian independence continues to enjoy wide support within the Asian-African bloc--as dem- onstrated at the Monrovia con- ference of African states--and any moderate resolution in fa- vor of Algerian independence stands a good chance of passage by the UN General Assembly this fall. Paris, however, is in- creasingly insistent that France's allies oppose any Al- gerian resolution using the word "inde endence." 25X1 SPANISH-MOROCCAN RELATIONS Last April's improvement in Spanish-Moroccan relations may be impaired by Rabat's ap- parent determination to harass the Spaniards into accelerating their troop withdrawals from northern Morocco. Madrid re- cently agreed to make a sizable reduction in its troop strength there.. Moroccan Premier Ibrahim's visit to Madrid in April result- ed in the creation of a Spanish- Moroccan commission to discuss technical problems between the two countries. The commission concluded its second round of talks on 5 August with an agree- ment by the Spanish Government to evacuate its 3,000 troops in Tetuan in the near future. Ac- cording to a Spanish Foreign Ministry official, this deci- sion has given Rabat "a con- siderable political plum and great satisfaction" and yet does not denote any departure from Spain's basic policy on the troops issue--that in recog- nizing Morocco's independence in April 1956, Spain acquired the right to keep troops in the area during the transitional period. SECRET PART I I Approved For Release 2006/11/13 : CIA-RDP79-00927AO02400020001-5 NOTES AND COMMENTS Page 4 of 16 Approved Fo elease 2006/1 Ve fiI,p fDP79-00902400020001-5 CURRENT INTELLIGENCE WEEKLY SUMMARY 13 August 19.59 According to the Spaniards, the decision to reduce their troops in Mo- rocco from 11,000 to 8,000 elicited a Moroccan agreement involving-"certain cultural concessions" and the payment of a consolidated debt of about $6,000,000 over a 25-year pe-- riod. No decision was reached on Span- ish demands for fish- ing rights in Moroccan territorial waters, and the issue of a complete withdrawal Gibraltar (UK) Strait ?o!