CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A004300430001-6
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 19
• Document Creation Date: December 15, 2016
• Document Release Date: May 27, 2003
• Sequence Number: 1
• Publication Date: January 23, 1959
• Content Type: REPORT

' Approved Four,Release~~,~J/O~~I~~T009~75A004300430001-6 /
/ 25X1 /
23 January 1959
/ 25X1 /
/ Copy No. /
E3 ~
~.
s ~
i ~
i ~
i
i ~
i ~
i ~ ~
~ ~
~ ~
i ~ ~
i ~
~ ~
i ~
~ ~
~ ~
~ ~
'DOCUMENT NQ _ ~~~'`M'~''~ /
td0 CHANGE Ii'J CLASS. ~_~-~ ~ /
/ I I ~ UL-CLASSi~!'cD /
/
~n~r>r n. ~'~f j
~ ~
~'~ leEX. F?~Vt~bVDATE:
/ `~ ~, ~J ~;uT~l H ~ 25X~
~~ST4fE50F'~ DATLy~~~~--~_~-RcV!EVJ[R:~.~..r~
~J ~
25~~.~/
/ Army, USAF, DIA and State Department
/ review(s) completed. /
TOP SECRET
Approved For Release 2003/09/02 :CIA-RDP79T00975A004300430001-6
 25X1 gpproved For Release 2003/09/02 :CIA-RDP79T00975A004300430001-6
Next 1 Page(s) In Document Exempt
Approved For Release 2003/09/02 :CIA-RDP79T00975A004300430001-6
 /////////////////////////O//////////////////////////////////////////O/~//O//O////////////////// ~i/i~i~~i~i~~~ii~i~iiii~iiiii~i/
~4nnrnvPd Fnr R Od300d30001-6 25X'
CENTRAL INTELLIGENCE BULLETIN
25X1
25X1
23 January 1959
DAILY BRIEF
I. THE COMMUNIST BLOC
USSR-Finland: Khrushchev has made a sudden trip to
Leningrad.--onl-wive days before the ,party .congress--to
meet with Finnish President Kekkonen9who is there on a
"private" visit. The presence of both the Soviet and Finnish
ministers of trade and Soviet Foreign Minister Gromyko in-
dicates that trade as well as political discussions will take
place. The Soviet leaders appear to be making a special ef-
fort to conciliate the Finns and may hope to obtain some
Finnish endorsement of the USSR's roposals on Berlin and.
a German peace treaty.
II. ASIA-AFRICA
Israel-France: 'The unauthorized flight over Greece on
25X1 6 January of French-made Mystere 'TV B-2 (Super-Mystere)
rus
tio
of C
di
d i
th
h
d
,
n
rec
e
yp
e
n
ea
high-performance iet fighters
strongly suggests that these aircraft were en route to Israel, 25
Israel is reported. to have contracted for ^such aircraft last 25X1
spring. These new aircraft would considerably increase the air 25
defense capability of the Israeli Air Force:
Approved For Release 2003/09/02 :CIA-RDP79T00975A004300430001-6
 j Approved For el - 4300430001-6 25X1/
.''~// jj
Arab Mates: Plans by the Arab League to set up an
Arab Navigation Company consisting la~?gely of oil tankers
appear to be moving rapidly toward realizations The UAR,
which will control the company through its 4.0 percent in-
% terest, is currently concluding a deal with Japan for the
~~ construction of two 20,000-ton tankers which it hopes will
provide a nucleus for the Arab fleeto Since the company,
will be owned by Arab governments political pressures
e
j will probably be applied on Western oil companies to grant
long-term contracts to carry Middle East oil,
j 25X1
25X1
25X6
French West Africa: The adoption on 17 January by
representatives o four of the seven autonomous "republics"
in French West Africa of a draft constitution providing far
a federal regime to be known as the Federation of Mali re-
flects the growing urge among politically conscious Africans
far greater unity. The new grouping, which is expected to
be endorsed in a referendum scheduled for 22 February,
will. remain within the French Community far. the presento
It will face extensive political and economic problems.
(Map
Japan: Alast-minute agreement between Prime Min-
ister Kishi and. his ravels. in the Tulin Liber~.l~Democratic
-~a~.tyi virtually
assures Kis i s x~e-e action as party Ares en on ,January.
Party leaders have agreed to close ranks, on as yet undis-
closed, terms, in the face of a difficult Diet session beginning
28 January,' Kishi will probabl contl.nue as prime minister
until summer at least
25X1
25X1
lxa.donesiao The American ambassador cites a savage at-
tack on the Communist party by a leading Djakarta daily, often
used as a government mouthpiece, as evidence that the govern-
ment may be shifting away from dependence on pro-Communist
and Communist groups. He considers it unlikely that such an
article would have been written without President Sukarno's
approval.
23 Jan 59 DAILY' BRIEF
Approved For Release 2003/09/02 :CIA-RDP79T00975A004300430001-6
 j A d R 004300430001 6 25X1
pprove or - j
j
b
*Austria- USSRq Soviet Ambassador Lapin told. a high
Vienna official a few days ago that bilateral Austrian asso-
ciation with the European Common Market would. be consid-
ered aviolation of Austria's neutrality. The Soviet warning
is a serious intervention in Vienna's conduct of its foreign
affairs. Sh.o~ald Vienna be unable to work out an acceptable
tie with the Common Market, Austria would. face an eco-
nomic squeeze in view of its heav de endence on access
to Western European markets.
Argentin~o The costly strikes by industrial labor, along
with terroristic tactics against workers returning to their
jobs, will. probably stimulate revision of government labor '
legislation and stronger action against the Peronistas and
Commun.ii~ts, p~ossibl~ ~ including autl.awing the Communist
p~.~?tyo Such action may be deferred, however, until after
President Frondl.zi returns from the United States on 2 Feb-
III. THE WEST
ruary.
23 Jan 59
DAILX BRIEF
Approved For Release 2003/09/02 :CIA-RDP79T00975A004300430001-6
 ji%%j~~~~~~~~~~~~~~~~~~~~~~j/ ~~/ -_ _ AAAA/AA/AA _ /11 A I'91"11"f-IATAAA/~ A /~jjjjjj~j~~~j/~/~/
Approved for Re
25X1
.,ATE ITE M
IV. SIGNIFICANT INTELLIGENCE
REPORTS AND ESTIMATES
(Available during the preceding week)
SNIE 72-1-59. Outlook for the Sudan. 6 January 1959.
25X1
23 Jan 59 DAILY BRIEF iv
? 25X1
/O/~~~~/0~~~//0~~~~~~~~~~~~~~/O~~/O~~///0~~~~~~/////~~///0~~~~~~~~~//O//0~~~/D~~~///ODD~O/~/O/~~~~%~~~~~ /~/O~%~~~~,
Approved For Release 2003/09/02 :CIA-RDP79T00975A004300430001-6
 25X1
Approved FyRpipa~p ~~0~/09102 ? X111-RRP79TOQ.~751100a?300430001-6
I. THE COMMUNIST BLOC
Khrushchev, Kekkonen Negotiate
Soviet Premier Khrushchev, only five days before the
Soviet party congress, has made a sudden trip to Leningrad.,
where Finnish President Kekkonen is making a "private
visit:' Moscow appears to be making a special effort to con-
ciliate the Finns after the prolonged period of Soviet pressures
which last month toppled the Fagerholm coalition.
The presence in Leningrad of both the Soviet and Finnish
ministers of trade as well as Soviet Foreign Minister Gromyko
indicates that trade as well as political discussions will take
place. TASS announced, that "opinions an questions of Soviet-
Finnish relations and some problems of the international sit-
uation" had been discussed.. Khrushchev probably now hopes
to obtain a public Finnish endorsement for the specific Soviet
proposals on Berlin and a German peace treaty. Finland had
previously sent a prompt reply to Moscow favoring a confer-
ence on a German peace treaty. The communique issued after
Kekkonen's state visit last May endorsed anuclear-test ban, a
Rapacki-type European disengagement zone, and "universality"
in international organizations--the first time Finland. had joined
in such public statements.
e Finns are additionally concerned over the situation in
the Baltic and German rearmament, which they believe could. 1
lead. to a war inevitably involving- Scandinavia. The USSR may
also attempt to gain- Finland's support for a Baltic "zone of
peace"--a statement which Soviet leaders unsuccessfully
"pressed hard" to include in the May communique. Mikoyan
an 3 January in Copenhagen stated that he desired the Baltic
"ta become a sea of peace;'
23 Jan 59 CENTRAL INTELLIGENCE BULLETIN Page 1
25X1
25X1
25X1
25X1
25X1
Approved For Release 2003/09/02 :CIA-RDP79T00975A004300430001-6
 25X1 gpproved For Release 2003/09/02 :CIA-RDP79T00975A004300430001-6
Approved For Release 2003/09/02 :CIA-RDP79T00975A004300430001-6
 Approved F - ?~, 04300430001-6
`.r?
II. ASIA-AFRICA
Arabs to Establish Tanker Fleet
Plans to set up an Arab Navigation Company, largely to
operate oil tankers, appear to be moving toward realization
and may be completed by the time the Arab Petroleum Congress
meets in April. The Arab League Economic Council has de-
cided. that the company will be capitalized at about $15,000,000,
with the shares distributed among the members of the Arab
League. The UAR will hold 4,0 percent9 and. operations will
probably be coordinated in Cairo. Other holdings are to be:
Iraq, 14 percent; Lebanon, 5 percent, the Sudan, 4 percent;
Jordan9 2.5 percent; Yemene 2 percent; Libya 1.5 percenty and
the remaining 31 percent will be distributed among Kuwait,
Bahrein, and other Arab states.
The UAR9 hoping to provide the nucleus of the fleet, is
seeking to conclude a deal with Japan far the construction of
two 20,000-tan tankers. The Kuwaiti government reportedly
has approved the plan, and. the privately owned. Kuwaiti tankex
company will participate in this project. The rest of the pro-
posed Arab fleet will be government-owned.
Meanwhile, Iran also is quite far along in its own program
to carry a part of its oil production in Iranian-flag vessels. The
first 33,500-ton supertanker for Iran was scheduled. to be com-
missioned on 21 January and another of the same tonnage in about
six months. Five other supertankers of 50,000 tons are being
built in Swedish yards and wall be delivered at the rate of one
each year from 1960 to 1965.
These tanker programs are being carried out despite the ex-
istence of surplus tanker capacity amounting to at least six mil-
lion dead?aweight tons.
23 Jan 59 CENTRAL INTELLIGENCE BULLETIN Page 3
25X1
25X1
25X1
Approved For Release 2003/09/02 :CIA-RDP79T00975A004300430001-6
 Approved For Re se 2003/09/02 :CIA-RDP79T00975AE~i,300430001-6
vw. chn.ros
~1
FREZ~iCH ~ WES`
FftEN H
~.
'sAL ~~ SUDAN
..?+foA au ,f''
o nx~.~ ~ VOLTk_
~} GUINEA
Freetown _ 1
BffiRRA (_/Glr'
LEOxe
Monrav~le~
LIDEAIA
IVORY cxeN'A
COAST S
Abltl~an- Accre
? Republic boundary
UNCLASSIFIED
STATUTE MILES
~1
sozsa
CHAD
FRENCH
E(~UATORIA~?'
?CENTRAL AFRICA
C UBANGI-SHARI )
(MIDDLE
GABON ??CONGO
UAR
(EGYPT)
B?ELGdAN CONGO
e ea.mue ~u.emti~
Approved For Release 2003/09/02 :CIA-RD 75A0 -
NICaER
:AFRICA
Aatlie Abeb.?
ETHIOPIA
 25X1
West Africans Creating New Regional Federation
African leaders representing Senegal, French Sudan,
Upper Volta, and Dahomey--four of seven autonomous West
African "republics" which opted to join the new French Com-
munity--approved on 17 January a draft constitution which
provides for a politically meaningful federal regime to re-
place the former largely administrative federation of French
West Africa. Popular endorsement of the new grouping, to
be called the "Federation of Mali" after a semilegendary em-
pire which embraced large areas of West Africa between the
13th and 16th centuries, is expected when the draft instrument
is submitted to a referendum in the four founding territories
on 22 February. Some 11 of the approximately 17 million in-
habitants of French West Africa will be included in the new
political entity as presently envisaged.
Although the 62-article draft constitution does not give
extensive powers to the federal institutions, it provides for
a federal executive, assembly, and separate judiciary, and
places administration of federal security forces in the hands
of the chief of the federation. It provides for the adherence of
new members and for secession.
This agreement represents a fundamental decision in favor
of regional consolidation by important elements of the two lead-
ing interterritorial political parties--the African Democratic
Rally (RDA) and the African Regroupment party (PRA). It
also reflects the growing appeal of pan-Africanism among po-
litically conscious Africans. Its achievement in the face of the
vigorous hostility of the Ivory Coasts Houphouet-Boigny, cre-
ator and president. of the RDA as well as minister of state in
the French Government, seems certain to heighten the serious
rift which the federation issue has already produced in the RDA.
Eventually, the attraction of such a federation for the three
territories presently remaining aloof may undermine the power
of Houphouet and other nonparticipating area leaders.
For the present, the new federation can be expected to
remain within the- French- Community, the constitution of which
25X1
23 Jan 59 CENTRAL INTELLIGENCE BULLETIN
Page 4
Approved For Release 2003/09/02 :CIA-RDP79T00975A004300430001-6
 Approved For Release 2003/09/02 :CIA-RDP79T00975AOq
provides specifically for such a "primary" grouping linked
as a unit with France. However, most of the African
Nationalists who formed the federation have not disguised
their Community's provision enabling a member republic
to become fully independent when it chooses.
25X1
25X1
23 Jan 59 CENTRAL INTELLIGENCE BULLETIN Page 5
Approved For Release 2003/09/02 :CIA-RDP79T00975A004300430001-6
 Approved For
Japanese Conservatives Reach Compromise
25X6
25X6
The principal factors be in e
agreement appear to be concern for maintaining party unity in
the face of a difficult Diet session. beginning on 28 January and.
preventing possible losses in the upper house election in June.
The terms of the compromise have not yet been revealed, but
presumably involve a commitment by Kishi to give some of his
rivals important cabinet or party posts in the near future in re-
turnfor agreement to hold a party presidential election on 24
January.
The prime minister's rivals, who had. demanded that the
party presidential elections be postponed until after Kishi's term
expires on 21 March, have announced that they intend to nominate
former Education Minister Kenzo Matsumura as a candidate to
challenge Kishi. Although Kishi's re-election as party president:
seems assured the compromise gives him only a temporary
respite from
Ki hi probably will continue as prime mini
til after the elections to the upper house next Ju
Diet sessions he will probably concentrate on p
and will avoid, the introduction of controversial
as his bill to increase police powers. The opp
encouraged by the defeat they administered to
ster at least un-
ne. During the
assing the budget
legislation, such
osition Socialists,
Kishi on the 25X1
t session and b
l
th
i
y 25X6
as
e
ng
police?powers bill dur
25X6 will harass the gove
rnmen on every
occasion.
th
e Socialists may
25X1 carry out a plan to imp ica e s i m an a ege
d reparations
scandal,
25X1
23 Jan 59 CENTRAL INTELLIGENCE BULLETIN Page 6
Approved For Release 2003/09/02 :CIA-RDP79T00975A004300430001-6
 Press Attack on Indonesian Communists May Have Had President
u arno s pprova
A "savage" editorial attack on the Indonesian Communist par-
ty on 20 January by the Djakarta daily- Merdeka-a National party -
orientedpaper--is the strongest condemnation to date in the run
ping fight between the National and Communist parties. Since
Merdeka is frequently a government mouthpiece, however, the
editorial may also be a further indication of President Sukarno's
shift away from dependence on the Communists. Several Indonesian
sources recently have expressed their belief that Communist access
to Sukarno is decreasing steadily.
The paper attacked the Indonesian Communist party as a
branch of international Communism under the aegis of Moscow.
Merdeka stated that the party's purported defense of liberal democ-
racy, its previous wholehearted support of Sukarno's '!guided democ-
racy.''~ program, ,and :~. ias. current position on a proposed revision
of the composition of parliament are only steps toward its goal of
seizu~e~ of complete pb~ver.:.
According to Merdeka editor Diah, who is a National party
member, the current con~~ict between Sukarno and the Commu-
nists on the method of choosing an enlarged parliament offered
a clear and rare opportunity to attack the Communists and alienate
them from the President. The Communists heretofore have gen~
erally given vigorous support to Sukarno and have gained wide
popular approval through their identification with him and his
policies.
Diah evaded a direct statement on whether Sukarno had
prior knowledge of the editorial. The American ambassador
in Djakarta, however, believes it unlikely that Diah would have
made such a strong statement withatit consulting the President.
25X1
23 Jan 59 CENTRAL INTELLIGENCE BULLETIN Page 7
Approved For Release 2003/09/02 :CIA-RDP79T00975A004300430001-6
 Approved or Release 2003/09/02 :CIA-RDP79T00975A
III. THE WEST
USSR Warns Austria Against Association With the European
Common Market
Soviet Ambassador Lapin told the director general of the
Austrian Foreign Ministry "a few days ago" that bilateral
Austrian association with the European- Common Market (EEC}
would be considered a violation of Austria's neutrality. Since
Lapin had told the Foreign Ministry some months earlier that
Austrian membership in the EEC would be abjectionable, the
present warning is interpreted to apply even to a tenuous EEC
association.. Lapin stressed that, while his approach was in-
formal} his government takes a serious view of the matter,
Since Austria's neutrality law binds it only to join no for-
eign military alliances and to permit no military bases on its
soil, the Soviet warning represents a serious intervention in
Vienna's conduct of its foreign policy. It recalls past Soviet
intimations that Moscow would object to Finnish association
with the Organization for European Economic Cooperation
(OEEC}. Since the signing of the Austrian State Treaty, the
Soviet Government has been careful to remind. Austria, on sev-
eral occasions, of its "obligations as a neutral state."
Austria has long been nervous about Soviet opposition to
its closer association with Western European ecanornic organ-
izations, and already has decided that full membership in the
EEC is probably out of the question. Since about 50 percent of
Austrian trade is with the Common Market countries9 same
kind of association with EEC has seemed essential--either bi-
lateral or, preferably9 through the multilateral framework the
proposed Free Trade Area would provide.
23 Jan 59 .CENTRAL INTELLIGENCE BULLETIN
Page 8
25X1
25X1
Approved For Release 2003/09/02 :CIA-RDP79T00975A004300430001-6
 Approve
Argentine Strikes May Prompt Stronger Steps Against
Communists and. Peronistas
The Argentine Government may revise its labor policies
and. take stronger action against the Peronistas anti, Commu-
nists because of the defiant attitude of Peronista-led unions in
the costly industrial strikes which began on 13 January. Ex-
tremist elements exacerbated. the situation by adopting terror-
istic tactics against workers returning to their jobs. Action
may be deferred, however, until President Frondizi returns
from the United States on 2 February.
Government measures thus far have included the arrest of
Peronista and Communist labor leaders and: the closing :of: aheir
party headquarters9 as well as the mobilization of petroleum
and. city transport workers, Firm security measures re-es-
tablished transport services by 20 January, thus encouraging
the majority of nonindustrial labor to return to work.
Just before the President departed for Washington, the
Frondizi-dominated Congress began consideration of legisla-
tion requiring arbitration of disputes before strike action.
Anti-Peronista .leaders, encouraged. by the administration9s
charges that the Peronista and Communist strike action had
subversive aims, will probably renew pressure on Congress
to modify the basic labor law, which they believe favors the
Peronistas' drive to regain control of organized -labor in the
union elections now under way.
The government may even move to outlaw the Communist
party9 but Acting
President Guido said on 22 January that e i .not believe
this: would. be ~ necess:aryt . Zty $~ems more likely;:;13h~.t the .
recent unrest may add impetus to efforts toward legislation
which would improve the investigation and control of Commu-
nist activities. Except under the current stag-of~ siege meas-
ures, security forces lack such authority.
Frondizi's strong stand. against labor agitation has strength-
ened. his military backingq
23 Jan 59 CENTRAL INTELLIGENCE BULLETIN Page 9
25X1
Approved For Release 2003/09/02 :CIA-RDP79T00975A004300430001-6
 25X1 gpproved For Release 2003/09/02 :CIA-RDP79T00975A004300430001-6
Next 2 Page(s) In Document Exempt
Approved For Release 2003/09/02 :CIA-RDP79T00975A004300430001-6
 Approved_F - 0430001-6
~~.-'
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 and Civilian Mobilization
Special Assistant for Security Operations Coordination
Board of Consultants on Foreign Intelligence Activities
Special Assistant for Foreign Economic Policy
Special Adviser to the President
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 Secretary 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 Arrny
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 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
The Department of the Interior
The Secretary of the Interior
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
25X1
25X1
Approved For Release 2003/09/02 :CIA-RDP79T00975A004300430001-6
 i i i i i i ~ i ~ i ~ i ~ i / / / +/ / / / / / i ' / / /// / / / / / / // /////////////////
Annrnvcrl Fnr Rcc ~9 ~~R~~~f1Q75Afl~tflfld3flflfll_R
TOP SECRET
Approved For Release 2003/09/02 :CIA-RDP79T00975A0043