CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A004600300001-7
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 13
• Document Creation Date: December 15, 2016
• Document Release Date: September 25, 2002
• Sequence Number: 1
• Publication Date: August 4, 1959
• Content Type: REPORT

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DOCUMENT NO. __~/
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4 August 1959
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W9 I L INTELLIGENCE BULLETIN
j CENTRA
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4 August 1959
NEI DAILY BRIEF
I. THE COMMUNIST BLOC
USSR-Nixon visit: Moscow's initial propaganda reac-
tion to Vice President Nixon's. TV-radio speech of 1 August
stressed his alleged, failure to offer an adequate reply to
questions as. to why the United States, is encircling the USSR
with military bases, Moscow radio also accused the vice
president of "distorting" Soviet foreign policy. At the same
time, Soviet commentators endorsed his statements regard-
ing peaceful settlement of disputes and expansion of contacts,
between the United States and the Soviet Union.
*Izvestia published the full text of the speech on 2 August,
and Pravda carried a 300-word account, The live broadcast,
-was with the television presentation, was
carried for Moscow audiences, but not on the main home ser-
vice program. According to available information the speech
has not yet been broadcast Soviet programs
outside the o
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II. ASIA-AFRICA
t_0 These latest reports are unconfirmed. The American military
attachd's earlier assessment was that North Vietnamese involve-
ment does not go beyond training, supply, and direction of the
dissident partisans, Phoui has indicated he will apprise the UN
secretary general of the dangerous possibilities in the situation
and possibly follow this with an appeal for observers or "other
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lief, on the basis of a late report from Phong Saly Province,
that regular forces of the North Vietnamese Army have been
involved in recent attacks against Laotian Army outposts. In
addition, Phoui has a report from the governor of the adjacent
Nam Tha Province, which also borders, Communist China, of
the arrival of regular Chinese Communist forces at frontier
posts normally garrisoned by border security detachments.
Laos: [Premier Phoui states he is strengthened in his be-
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. Ceylon: The government of Prime Minister Bandaranaike
remains highly vulnerable in view of its narrow majority and
the generally unsettled. conditions in Ceylon, despite Parlia-
ment's approval of the budget. In the critical 31 July vote, de-
fections hick conservative elements have been trying to engi-
neer among Bandaranaike's supporters again failed to materi-
alize.
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4 Aug 59
DAILY BRIEF
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African conference: The ministerial-level meeting of nine
indepen ant African states which convenes, in Monrovia, Liberian
from 4 to 8 August will probably impair French relations with
most, if not all, of the participants. The Algerian problem will
be a principal topic, and other items on the provisional agenda,
such as the African demand for new elections in Cameroun prior
4 0 to independence and France's plans to test nuclear weapons in
the Sahara, appear certain to be discussed in a manner offen-
sive to Paris. The Union of South Africa, which is not partici-
pating, will also be heavily criticized, particularly for its
racial policies and its long-standing refusal to place Southwest
Africa under the UN trusteeship system.
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III. THE WEST
j Argentina: The labor situation is deteriorating. Peronista
and Communist labor leaders threaten that they will soon inten-
sify their strike pressure against the austerity measures of
rj the US-backed stabilization program. The new economy minister,
Alvaro Alsogaray, who earlier attempted a conciliatory approach
to labor demands, gave a stern warning to "extremist agitators"
following his meeting on 1 August with the military chiefs. C
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I. THE COMMUNIST BLOC
II. ASIA-AFRICA
[Laotian Premier Phoui states that recent field .reports have
convinced him the situation is even more serious than he had pre-
viously thought. He has received word from the governor of Nam
Tha Province of the reported*arrival of regular Chinese Commu-
nist forces along the frontier where previo sly only.border security
detachments had been noted. Severalpoints on the border were
reported by the governor to have been occupied recently by ap-
proximately 500 regular Chinese Communist troops. Late word
from the governor of adjacent Phong Saly Province has re;.nforced
Phoui's belief that regular forces of the North Vietnamese Army
are involved in the current fighting. Three towns in this ovince
have been occ ied by Vietnamese company-size units, acL, rding
to the governor, who has the reputation of being a reliable observer
here is no' reliable evidence available to substantiate or dis-
prove either the reported Chinese activity or the participation of
North Vietnamese regular forces. The Chinese Communists main-
tain about 136,000 troops in the Kunming Military District, which
is adjacent to Burma, Laos, and North Vietnam. Peiping may
have initiated small-scale troop movements to increase the ap-
prehensions of Laotian officials. The North Vietnamese have
about 20,000 troops deployed along,the Laotian border. These
units could give substantial support, both in the form of materiel
and direction, and it is likely this type of assistance is being
clandestinely extended to the former Pathet Lao guerrillas?
Bloc propaganda is attempting to place the onus on the United
States for the situation in Laos. While categorically denying)
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Vietnamese Communist complicity in the fighting, Hanoi alleges
that a "military build-up" is taking place in Laos which is "part
of a US plan for war preparations in Indochina and Southeast
Asia." Moscow is charging that American policy, by convert-
ing Laos into a US military base within the "zone of action of
SEATO," is to blame for the "threat to the peace." Soviet
Foreign Minister Gromyko at Geneva, according to press
reports, rejected Britain's view of the causes of the recent
fighting, and Moscow will probably renew its arguments for
an "impartial" investigation in Laos by the ICC at further meet-
ings of the Geneva conference cochairman,(
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Bandaranaike Government Survives New Test in Ceylonese
Parliament
Prime Minister Bandaranaike won a further respite for
his shaky government on 31 July when the Ceylonese Parlia-
ment approved the budget presented earlier in July. The
vote of 49 to 41, which climaxed seven days of bitter debate.,
was Bandaranaike's second critical test in Parliament since
the leftist element in his coalition withdrew in mid-May and
left the government with only a bare majority.
Defections from Bandaranaike's party, [which conservative
elements reportedly have been trying to engineer again failed
to materialize. With the exception of one absentee, all of the
government's 50 representatives voted in support of the budget..
Eight of the 49 opposition members did not vote. Most of
these were followers of the Communist party line, who ap-
parently wished to avoid forcing an election since it probably
would favor right-wing elements.
Because of his narrow majority and the generally unset-
tled political and economic conditions, Bandaranaike's position
remains highly vulnerable. The government's uncertain f!:t~ure
is likely to inhibit any effective action on the country's long-
standing problems; the present leaders have made it clear they
hope to avoid controversial measures that would risk tie govern-,
ment`s downfall.
Opposition groups will keep the Bandaranaike regime -under
steady pressure. Their next opportunity for a test of strength
probably will occur soon when the combined opposition presents
a motion for establishing a special bribery commission to in-
vestigate fully the many recent allegations of corruption in the
government. Widespread public feeling, stimulated by the press,
that a thoroughgoing investigation is needed may make it difficuyt
for the government to maintain its strong stand against such a
proposal.
4 Aug 59
CENTRAL INTELLIGENCE BULLETIN
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III. THE WEST
Argentine Labor Situation Deteriorating
Peronista and Communist labor groups in Argentina are
threatening to intensify strike pressure against austerity
measures under the US-backed stabilization program. The
new minister of economy, Alvaro Alsogaray, who earlier at-
tempted a conciliatory approach to labor demands, gave
stern warning to "extremist agitators" following his meet-
ing on 1 August with the military chiefs. A number of short-
term strikes are under way. The central directorate of
Peronisa-dominated "62 Group" unions has declared itself
in permanent session, presumably to map strike strategy,
and the smaller Communist-dominated group of unions is re-
ported organizing a "mammoth" demonstration against Also-
garay's "hunger plan."
Alsogaray has been giving a series of weekly talks to ex-
plain the need for austerity measures, including a scaling down
of wage demands through October, which he described as a
critical period. Prior to these talks, in an effort to soften
labor's attitude toward his program, he announced the ending
of military control over three important labor unions.
The government's concern over the situation is reflected
not only in Alsogaray's shift to a hard line against strikes but
also in the announcement of restrictions on travel of bloc dip-
lomats within Argentina. The restrictions, generally to a 25-
mile radius of Buenos Aires and based on reciprocity, had been
under consideration since last April, when Argentina expelled
one Rumanian and four Soviet diplomats for interfering in in-
ternal affairs, including strike agitation.
4 Aug 59
CENTRAL INTELLIGENCE BULLETIN
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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
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
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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