CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A005300460001-2
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 14
• Document Creation Date: December 15, 2016
• Document Release Date: December 24, 2002
• Sequence Number: 1
• Publication Date: October 24, 1960
• Content Type: REPORT

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24 October 1960
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CENTR L INTELLIGENCE BULLETIN j
24 October 1960
DAILY BRIEF
II., ASIA-AFRICA
Laos: (King Savang has signed an ordinance accredit-
ing the Soviet ambassador and has scheduled an audience
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earlier at le t, had been close to an open break with his
governments In Vientiane, there are reports that Kong Le
p his position with General Ouane and other officers who,
s in Luang Prabang, where he will probable attempt to shore
rdinance for ten days, apparently hoping that Souvanna's
eutralist government would fall-] Souvanna reportedly now
may be planning an early attack on General Phoumi's de-
fense line in central Laos c
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*.Republic of the Congo: New outbreaks of mutiny and dis-
order in the Congolese army reportedly have occurred in Leopold-
ville and in the provincial capitals of Stanleyville and Coquilhatvillee
Mobutu has flown to Coquilhatville in an effort to restore order ther, eo
He is reported to be near the breaking point, and his decision to
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present his i .s
motivated party
rt
a'~ a< iuVine. In am
i':flu .gnce in Con{,o ,
The latest outbreak
ht?s glade no attempt
N and pro- Lumui bh ---
government which we.-'.
C head'sue?r Zers r ip_Y have lid..en
t. escape from the pressures in
h.c m a~~ not be able to retain any
_._..rs once he has left t:.% counts-va
violence which the UN apparently
p, v:ill complicate efforts of the
s to reconstitute a Conc olese
:chic"? Lumumba. 25X1
Tfl WEST
r us;ria: Follo:=a? 'ident Schaerf's refusal to ac-
cept his resignation c_ : i Ocf. ?.bcr, Chancellor Raab has
agreed to try to re e. L:e zsh t' e People's party - Socialist
coalition government. ;? rot cte effort may be necessary,
since the long- stancL a -ere ces of the two-oarties over fi-
n"= cial policy have becoi.-_ more severe in recent -nonth:3.
The dispute with Italy t : South Tirol-- c urre ntly under
discussion in the Unit::d " Lions--may be exacerbated during
maneuvering for the fcn .4ior of a new governmrment, since
both parties may try to outdo each other in seeking public sup-
port on the Tirol issue.
Cuba: While the ma orityy of Latin American governments
seems to feel that the US was Justified in imposing an embargo
on most exports to Cuba, o fics=al circles in Mexico and Chile
are critical, vi vin; ve US action as giving Castro an inipor-
tant propaganda advan .age in the hemisphere. Other govern-
ments, while sympathe ic, are concerned over what they expect
will be a strong adverse reaction in Latin American public opin-
ion. The Canadian press, meanwhile, has been unanimous in
applauding Prime Minister Diefenbaker's announcement that
24Oct60
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-C?. ,:-Ia han no mn e 4-,- - of Imposing an~,
oli 'via: Presid-Y- is told US Ambassador Strom
is under ine ew_ h political and economic
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pr , ;ure as a result o. ?2 ivity by e Creme leftists
-~d Conirnunists, who e4: tin she story that he is
x L ing the Bolivian az seemed enuinely
dl A ;bed, and Strom ~. ...a ..ad "never found him u-set
b rep -
. .. said h_ on `,s made particularly df_
f.=--t by Communist bI r ., a tin smelter and other
cw ~ ofnic aid at a time : _ - the Bolivian treasury is empty.
(Page8 )
24 Oct 60
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Situation in La
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L King Savang has signed an ordinance accrediting the
Soviet ambassador and has scheduled audience with him
in Luang Prabang on 26 October. Thp King had stalled
signing the ordinance for ten days, apparently in the hope
that Souvanna's neutralist government would topple. Savang
reportedly told that he had no al-
ternative but to accept the Soviet en'oy, even though he felt
that this would open the door to Soviet infiltration, propagan-
da, and subversion, which, he said, !Laos is too weak to re-
sist
Souvanna reportedly left Vientiane on 22 October for a
visit to Luang Prabang and. two provincial capitals in north-
ern Laos. He probably is attempting to shore up support for
his government from General Ouane and other officers in
Luang Prabang who, at least earlier, were close to break-
ing openly with Vientiane. Souvanna may also wish to consult
with provincial officials on the Pathet Lao military effort in
northern Laos.
LWith Souvanna and General Ouane out of Vientiane, Kong Le
is free of any restraining influence. Reports indicate that Kong,
who has been described as politically unsophisticated, has ex=
tensive contact with Pathet Lao sympathizers. On 22 October,
he reportedly allowed Colonel Singkapo, a ranking Pathet Lao
officer, to address a meeting of Laotian Army officers in Vien-
tiane on the subject of neutrality. Rumors continue to circulate
that Kong, possibly in cooperation with the Pathet Lao, may be
planning an attack on General Phoumi's defense line in. central.
Laos.
,.,,A Laotian Army patrol investigating the loss of a post in
the southern province of Attopeu was attacked on 16 October by
Pathet Lao troops wearing new uniforms. The Pathets, who
previously have withdrawn in the face of Laotian Army probes,
apparently had been resupplied and possibly reinforced. Troops
under General Phoumi's control are considered capable of con-
trolling only the principal towns in Attopeu Province, while the
Pathets have freedom of movement throughout the countryside.
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Situation in the Congo:
New outbreaks of mutiny in the Congolese army reportedly
have occurred in Leopoldville and in the provincial capitals of
Stanleyville and Coquilhatville. Disorderly Congolese troops
have terrorized the African quarter of Leopoldville and have
routed the police patrols of provincial governor Kamitatu. The
UN, which earlier authorized joint patrols in the capital of its
troops and Kamitatu's police, apparently has withdrawn its forces.
Mobutu has flown to Coquilhatville in an effort to restore
order there., he
was not concerned over the army's loyalty; he apparently is de-
pending on the 5,000-man force based at Thysville to regain
control of Leopoldville. Mobutu apparently has vague plans
of protesting the activities of Ghana, Guinea, the UAR,
Morocco, and the UN command during his projected visit to
UN headquarters; however, he reportedly is near the breaking
point, and his decision to present his case personally at the
UN may have been motivated partly by a desire to escape the
pressures in Leopoldville;' In any case, most observers in
Leopoldville question whether he will retain any influence in
Congolese affairs once he has left the country.
The latest outbreak of army violence will complicate the
UN's efforts to bring about a peaceful reconciliation of political
factions. The UN, under heavy pressure from such pro-
Lumumba states as Ghana, Guinea, and the UAR, apparently
has reached the conclusion that a solution to the stalemate in
Leopoldville is impossible unless Lumumba and his followers
are allowed to participate in the government. However, un-
rest in the capital would probably prevent any attempt to re-
convene the Congolese legislature, and the UN command's
failure to take action against the mutineers could compromise
its reputation with both the politicans and the populace.
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RDP-749;~ The Rustrian i i
ollowing President Schaer s refusal o accept res-
ignation on 22 October, Chancellor Julius Raab is working to
reestablish a coalition of the same two parties which formed
the previous government- -Raab's right-center People's party
,and the Socialist party led by Vice Chancellor Bruno Pitter-
mann and Foreign Minister Bruno Kreisky. A protracted ef-
fort may be necessary to bring the parties together again;
long-standing differences over financial policy have become
more severe in recent months, and the coalition split came
after failure to agree on the 1961 state budget.
There has been a deficit of approximately $80,000,000 in
the budget both last year and this year, and inflationary pres-
sures have been on the rise. In the face of this, the Socialists
are advocating a $40,000,000 increase in pensions, out of total
planned budget expenditures of about $950,000,000. The Peo-
ple's party has not objected publicly to the pension increases
but wants to finance them mainly by an increase in contribu-
tions, whereas the Socialists propose an increase in taxes that
would fall primarily on the well.to-do.,
,(Raab had for some time been considering retirement from
politics because of ill health. If Raab fails to form a new gov-
ernment now, the Socialists may be asked to try because of the
close balance of power between the two parties in parliament.
The People's party has 79 seats in parliament,. the Socialist par-
ty 78. The remaining eight seats are held by the right-wing,
pan-German Liberal party./
The cabinet negotiations may indirectly exacerbate the dis-
pute between Austria and Italy over the South Tirol--the issue of
the rights of the German-speaking population in this area of Italy--
which is currently under discussion by the UN General Assembly's
Political Committee. In the maneuvering to form a new govern-
ment, both sides may strive to gain public support by outdoing
one another with extreme statements on the Tirol issue7l I
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Reactions to New U : -: Flo s on Experts to Cuba
l a.ile the majority c- .-,ti-. `-Ynericar. governments ap-
-oars to feel that the 1: :4 ? . St : es was justified in imposing
an embargo on most e: to ::a':;a., o ficial circles in Mex-
ico and Chile are tz ;ir : it^ wl attitude toward the US ac-
~w v is :. irg it as an a n t propaganda advantage for
heznispher.
Castro in "die
The Ecuadorea : 1-. mI aster and Bolivian President
chile syznpatu'l-_tiC .:e J position, have also expressed
concern over what t ey c": act be a strong negative re'ac.-
tion in publ ~c opinio oe the hemisphere. Venezuelan
}'. ident Betancourt, --all : s the Bolivian President; warned
at ~ on, iy s further ac-
e US move will be criticized unless
on is also taken against the _ =?illo dictatorship in the Domin-
' The ; -an attitude seems complicated by
o P
ub c
p
.
the hopes apparently r ~? _ .s eo Moth by the Kubitschek adminisW
t.rat .on and by Pres ,_ .' .et (ua.dros of effecting a reconcil<
iation between the t."?i_ ;..ate and the Castro regime.
Some of the Latin American govern=cents expressing sym-
for the United States move may see it as obviating the need
sy