CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A004500380001-0
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 14
• Document Creation Date: December 15, 2016
• Document Release Date: September 25, 2002
• Sequence Number: 1
• Publication Date: June 24, 1959
• Content Type: REPORT

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Approb 'lease 2002/10/21 CIA-RDP79T 0975ik004500380001-0 CENTRAL INTELLIGENCE BULLETIN j
24 June 1959
DAILY BRIEF
H. ASIA-AFRICA
Japan: A leftist campaign opposing the proposed revision
of the US-Japan Security Treaty is scheduled to begin on 25 June
with a "demonstration of force" under the guidance of the labor
federation Sohyo and the Socialist and Communist parties. Na-
tionwide strikes, rallies, and demonstrations are planned for
that date and are to take place periodically until the time of the
treaty's ratification next fall. The movement has not yet acquired
widespread public support, and there is no likelihood that the
leftists can block revision of the treaty and achieve its abroga-
tion. The Japanese police are believed capable of maintaining
order in the face of the scheduled disturbances.
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Cambodia - South Vietnam:
Cambodian Premier Sihanouk will visit Saigon in
my for direct talks with President Diem aimed at easing
ambodian-Vietnamese differences. Sihanouk proposed the
meeting to Diem and has given it broad ublicit There is
ittle likelihood of significant a reement.)
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III. THE WEST
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j Austria: (Defense Minister Graf is considering the pur-
chase of MIG- aircraft which Czechoslovakia has offered to
sell to Austria on very favorable terms. In explaining the offer,
which follows Soviet Defense Minister Ma.linovsky's recent visit
to Vienna, Graf emphasized to American officials that Austrian
technicians would be trained in Czechoslovakia and that no
Czech personnel would be sent to Austria. At present, the
Austrian Air Force has approximately 60 aircraft of which
only three are jets--British-produced Vampires
order. Some military groups are warning that Froncuzi s new
Argentina: President Frondizi faces a new political crisis
in his cabinet reorganization and in the increasing confusion
among the armed forces, whose support he needs to preserve
t
abinet nd policies must provide stronger measures against
eronista and Communist influence, or they will seek to oust
im Although the military leaders pledging support for consti-
ti nal government have thus far prevailed,, the situation re-
ains tense.
*Brazil: (Ultranationalist advisers of President Kubitschek
have drawn ilp-an anti-US "disaster plan," which they threaten
to publicize in the hope of forcing the US to reconsider Brazil's
request for an emergency balance-of-payments loan. This ma-
neuver is strongly opposed by the foreign minister and the act-
ing finance minister- -both of whom hope for an amicable com-
promise solution. The American Embassy considers that this
24 June 59
DAILY BRIEF ii
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( chool of thought is "for the moment" in the ascendancy, but the
1%mbassy is, uncertain of the President's views. The "disaster
plan" includes threats to denounce military agreements with the
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US, to expropriate certain private US holdings, and to n ot'"U.-
large-scale trade agreements with Soviet bloc countries.
IV. CONCLUSIONS OF SPECIAL USIB COMMITTEE
ON BERLIN SITUATION
The USIB has taken note of the following conclusions reached
by its special committee on the Berlin situation. The committee
pointed out that its, conclusions are to be used in context with all
SNIEs relevant to the Berlin situation.
1. During the recess of the foreign ministers'
conference, ending 13 July, the USSR will not con-
clude a separate peace treaty with the GDR or turn
over access controls to the East Germans. The USSR
will continue to use threats of such action as a form of
pressure on the West; nevertheless,, so long as it es-
timates that there are any prospects for a summit
conference, it probably will not take such action. The
actual physical transfer of controls could be accom-
plished. with little or no warning.
2. (a) With regard to the West German pres-
idential election in West Berlin on I July, the East
Germans will probably start a propaganda barrage
and may engage in some forms of harassment, which
would possibly include some interference with civilian
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traffic. Physical prevention of holding the election
seems highly unlikely.
(b) While there are no reliable indications of
a bloc intent to deny Allied or West German access to
West Berlin, or to seal off West Berlin in the imme-
diate future, such action could be taken with little or
no warning.
3. Moscow probably accepted the three-week re-
cess on the calculation that it will produce Western
concessions and that the talks will resume under con-
ditions more favorable to the USSR, whose uncompro-
mising posture on Berlin remains basically unchanged.
4. The USSR continues to anticipate divisions
among the Western Allies as a result of domestic pres-
sures in West Germany, the UK, and France.
5. The West Berlin economy continues to operate
at a high level and morale will probably be strengthened
by the decision to hold the presidential elections in Ber-
lin on 1 July.
6. There have been no significant changes in Soviet
capabilities to respond to possible Western actions
event of turnover, harassment, or blockade,
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II. ASIA-AFRICA
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Japanese Leftists Unite in Campaign Against Security Treaty
The Japanese Socialists have declared 25 June a "Day of
National Joint Struggle" and have called on all labor unions for
a nationwide strike, rallies, and a "demonstration of force"
against the US-Japan Security Treaty. Additional demonstra-
tions are planned for July, when signing of the new treaty is
anticipated; on 6 August, anniversary of the bombing of Hiroshima;
and "the highest demonstration of force" this fall when the Diet
is scheduled to ratify this treaty.
The Socialist party's program is strikingly similar to that
announced earlier by the leftist General Council of Trade Unions
(Sohyo), Japan's largest labor organization. The similarity between
these two programs tends to support conservative charges that the
Socialist party responds to Sohyo bidding.
Sohyo Chairman Kaoru Ota and Secretary General Akira Iwai
on 16 June openly advocated the principle of joint struggles in
future activities with the Japanese Communist party. Sohyo re-
portedly was asked by the Communist World Federation of Trade
Unions to observe the anniversary of the beginning of the Korean
war on 25 June with a campaign demanding withdrawal of US troops
from Korea and the Far East. Sohyo apparently has not responded
directly to this request, but it is planning to hold rallies opposing
US bases on 25 June at the American Embassy, the US air base at
Tachikawa, and the Japanese Foreign Ministry.
The campaign has so far failed to attract significant public sup-
port, and probably will not be as successful as that against the police
bill last year. The Japanese police are believed capable of prevent-
ing any disturbances from getting out of hand.
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Projected Cambodian-Vietnamese Negotiations
Cambodian Premier Sihanouk will visit Saigon next month
for talks with President Diem aimed at improving Cambodian-
Vietnamese relations, I
The Vietnamese Government is not
optimistic regar n outcome of these talks, especially in
the absence of preliminary working-level negotiations, but ap-
parently is loath to appear opposed to reconciliation, Sihanouk
proposed the high-level meting several weeks ago and has given
broad publicity to the idea
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Cambodia is primarily interested in committing South Viet-
nam o respect its neutrality policy and to cease support of the
small anti-Sihanouk dissident movement headed by Sam Sary and
Son Ngoc Thanh. It also wants Vietnam to settle a long-standing
financial obligation and to accord preferential treatment to the
sizable Cambodian minority in Vietnam, TheVietnamese Govern-
ment for its part, is concerned over growing Communist influence
in Cambodia and security conditions in the Cambodian-Vietnamese
frontier area.)
There is danger that Cambodia will seek closer ties with the
Sino-Soviet bloc if the projected talks fail to materialize or do
not satisfy Sihanouk. Cambodian officials recently have alluded
to considerable pressure on Phnom Penh to recognize Communist
North Vietnam
In ad addition, Cambodia probably would take steps, possibly
inc u n an approach to the Unit Nations, to damage Vietnam's
reputation before world opinion.)
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III. THE WEST
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Austria Considering Purchase of MIG-17s From Czechoslovakia
(Austrian Defense Minister Graf has informed the American
army attache in Vienna that he is considering the purchase of a
"squadron" of FRESCOs (MIG-17s) which Czechoslovakia recently
offered on very favorable terms at approximately $40,000 per plane.
Graf stressed that he would not make the purchase "without the
knowledge and approval of the Americans," and said he would in-
sist that Austrian technicians be trained in Czechoslovakia and that
no Czech personnel be sent to Austria. He added that his experts
consider the MIG-17 well suited to Austrian requirements)
The Austrian defense forces use both Western and bloc
materiel, some of it left behind by the occupation forces.
Purchase of a sizable number of MIGs would tend to weight the
air force in the direction of bloc-supplied equipment. Soviet De-
fense Minister Malinovsky, who recently visited Vienna, is said
to have offered the Austrians "whatever equipment they desired."
Austria currently has about 60 military planes, only three of which
are jets- - British-produced Vampires. Plans to purchase Italian
planes have evidently fallen through as a result of tensions between
Vienna and Rome over the South Tyrol)
The more than 7,000 MIG-17s (including 950 all-weather types)
now operational use in the Soviet Air Force are gradually being
replaced with higher performance types. Production of MIG-17s
has ceased in the USSR, but limited numbers are being produced
in Poland and Communist China)
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Argentine Military Pressures on President Frondizi
Argentine President Frondizi faces a new political crisis
in his cabinet reorganization and in the increasing confusion
among the armed forces, whose support he needs to preserve
order. The entire cabinet and the top banking officials resigned
on 22 June, probably in order to give the President a free hand
in the face of military demands for firmer action against Peronista
and Communist influence. Frondizi rejected the resignations of
the three service secretaries, who have been the strongest mili-
tary supporters of constitutional government.
The principal military plotters--a small group of die-hards--
and critics of Frondizi were prominent in the provisional Aramburu
government, but Aramburu himself opposes plotting. The extremists
are trying to channel the growth of discontent during the past seven
months of Communist- and Peronista-led labor strife into sup-
port for a coup.
Thus far the military leaders pledging support for constitu-
tional government have prevailed, but the situation remains
tense.
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Brazilians Considering Pressure Tactics in Bid for US Aid
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(Ultranationalist advisers of President Kubitschek have
dra up an anti-US "disaster plan." which they say will go
into effect if Washington and the International Monetary Fund
(IMF) continue to insist on a "complete" exchange reform as
a condition of emergency balance-of-payments aid.
(In the meantime, the ultranationalists plan to put pressure
on the United States for direct aid by publicizing potential "dis-
aster" measures, which include defaulting on international debts.,
denunciation of military treaties with the US, expropriation of
certain private US holdings, and large-scale trade treaties with
Soviet bloc countrie
This publicity maneuver is strongly opposed by the foreign
minister and the acting finance minister --both of whom hope for
an amicable compromise solution. The American Embassy con-
siders that this school of thought is "for the moment" in the
ascendancy. but the embassy is uncertain as to the President's
views. Kubitschek has grown increasingly irascible over the
financial crisis and was reportedly enraged by publicity given
this week to US Senate criticism of Brazil's financial policies)
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Kubitschek is under mounting domestic pressure to resolve
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the brfsis, but is increasingly fearful that both his reputation and
the stability of his government will be in danger if he adopts the
measures demanded by the IMF. Social unrest., already high
over sharp increases in the cost of living early this year, is ex-
pected to spread in the coming weeks as Communist and nation-
alist agitators prepare to demonstrate against utility and trans-
portation rate increases announced for 1 July. The Communists
will almost certainly claim that the increases were forced by the
US and the IMF and will probably try to provoke violence:l I
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THE PRESI NT
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
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 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 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 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
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
United States Information Agency
The Director
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