CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A006500060001-3
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 14
• Document Creation Date: December 14, 2016
• Document Release Date: March 5, 2003
• Sequence Number: 1
• Publication Date: July 9, 1962
• Content Type: REPORT

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GROUP I
Excluded from automatic downgrading
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9 July 1962 25X1
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9 July 1962
CENTRAL INTELLIGENCE BULLETIN
CONTENTS
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3. Brazil. President names new Prime Minister; mili-
tary leaders pressing Goulart for early solution to
crisis. (Page tv)
4. Austria. Government threatened by wave of strikes.
(Page v)
5. Belgium. Issue of religious influence in education
continues to threaten coalition cabinet. (Page vt)
6. Burma. Regime suppresses student demonstration.
(Page v t )
7. Laos: Souvanna bans establishment of new diplo-
matic relations pending Geneva settlement. (Page vtt)
8. Sino-Indian Border. Peiping protests new Indian
?\
military move. (Page vt t t)
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*Brazil: President Goulart on 8 July nomi-
nated 51-year-old Francisco Brochado da Rocha
~ 1211111 for the post of Prime Minister. Rocha is a mem-
ber of oulart' of ' a an
~ G s 1 test L bor party a d a close
political associate of ultra-nationalist Leonel
Brizola who is governor of Rio Grande do Sul and
brother-in-law of Goulart. \
Congress immediately called a session for
9 July to consider the nomination. The Labor party
has only 20 percent of the seats in the Chamber of
Deputies and Rocha's approval would require the
votes of at least one of the two major conservative
parties.
Members of the conservative-moderate oppo--
sition, which dominates congress, fear that Goulart
may take extralegal action against them. They may
be inclined to accept his nominee and agree to pro-
posals by supporters of Goulart which envisage
S
A
either holding a plebiscite on the constitutional
\ issue of the powers of congress or granting to the
\IM01
\ next congress--to be elected on 7 October--power
to reform the constitution.
\ The military are restive over the prolonged
crisis and are concerned that unrest, like that re-
cently evidenced in the Rio de Janeiro area, may
spread to other parts of the country. A scarcity of
staple foods has continued for three months--
primarily because of the government's failure to
act against speculators--and this situation is con-
tributing to popular unrest. 25X1
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Austria: A mounting wave of strikes threatens
to bring down the Socialist - People's Party coalition
government of Chancellor Anton Gorbach. The cabi-
net will meet early this week to decide whether it
should try to cope with the situation or resign and
call for early elections. Parliamentary elections are
scheduled for next November, having been advanced
from 1963 as a, result of previous friction within the
coalition.
Last week postal employees, police, and gendarmes
forced wage concessions from the government despite
opposition from the People's Party, which feared that
increases would trigger wage demands from other la-
bor groups and upset the budget. The government is
now threatened by a nationwide strike of doctors on 9
July, following the refusal of the government-controlled
health fund to increase fees for compulsory medical
service. The trade unions have denounced the doctors
for a "violation of public duties" and threatened in turn
to call protest strikes. 25X1
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tian coalition government of Prime Minister Lefevre
appears imminent. The two parties have been unable
to reach a compromise on the issue of the expansion
of religious influence in the Education Ministry. For-
eign Minister Spaak failed at a meeting on 5_rJUly to
bring his Socialist colleagues into agreement with
Flemish Catholic representatives, and he has disso-
ciated himself from subsequent contacts.
Control of education is an issue over which the
two parties are prepared to go to the polls. If the
prime, minister is unable to announce a compromise
at the opening on 10 July of the parliamentary debate
on the education budget, it is possible that the budget
will be rejected and the o e
_7 rnment dissolved.
Burma: General Ne Win has ruthlessly suppressed
the first open opposition to his. Union Rev)Dlutionary. C oun-
cil government. On 7 July army units, called in to dis-
perse 2,000 Rangoon University students who were riot-
ing to protest the arrest of four student leaders and new
dormitory regulations, fired into the mob with automatic
weapons, killing 15 and wounding 47 others. The army
demolished the Rangoon University Student Union build-
ing,.for 25 years the symbolic center of radical opposi-
tion to "oppression:' The university has been closed in-
def initely.
Student martyrs have long been used in Burma as
causes celebres to inspire antigovernment agitation; the
Student Union itself has been dominated since 1954 by
pro-Communists. General Ne Win has said that he be-
lieves the demonstration was instigated by politicians
and has warned that he will "crush mercilessly" fur-
ther obstructionism. Nevertheless, the government's
violent tactics may serve to unite the various civilian
elements opposed to Ne Win's dictatorial methods.
F_ I
9 July 62
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Laos: LPouvanna Phourna has instructed Vientiane
to suspend all action on establishing new diplomatic
relations pending a settlement at Geneva. Souvanna,
aware of the complications inherent in his coalition,
government's announced intention to recognize Com-
munist China, North Vietnam, and East Germany,
does not want to add further problems to the work at
Geneva. South Vietnam, which has relations with
Laos on the ambassadorial level, has threatened to
withhold its signature from a Geneva agreement if
Vientiane recognizes Hanoly
At a meeting of conference representatives of the
US, Britain, France, India, and Communist China on
6 July, the Soviet and Chinese Communist delegates
reiterated their opposition to any reference in the final
agreements to the integration and demobilization of the
rival Lao forces. The Communist delegates demanded
both that the Laotian declaration on neutrality specifi-
cally disavow any tie with SEATO and that SEATO
amend its protocol so as to drop any mention of Laos.
Soviet delegate Pushkin termed the meeting "dead-
locked," but the co-chairmen agreed to continue their
discussion in an effort to resolve the problems.
Xecording to the US delegate, Western delegations
promptly acquiesce to such a solution.
gent!'rally believe that if satisfactory solutions are
reached on other conference problems, the Commu-
nists may accept a compromise which would include a
reference to SEATO in the Lao declaration but would
not require SEATO action, providirig jt.e SEATO powers
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COMMUNIST CHINA-INDIA BORDER AREA
Boundary shown on Indian maps
Boundary shown on recent
Chinese Communist maps
Motarable road
------ Motorahle road
under construction
- - Minor road or trail
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9 July 62 CENTRAL INTELLIGENCE BULLETIN Map Page
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Sino-Indian Border: A Chinese Communist pro-
test note to India, delivered in Peiping on 8 July, re-
peats earlier warnings that Chinese forces will be
compelled to defend themselves if India persists in its
policy of "aggression:' The note, which followed un-
usually quickly after the event, charged that on 6 July
a 20-man Indian patrol attempted to cut off a Chinese
outpost in territory in dispute between the two sides.
India has countered with an unofficial statement as-
serting that the Chinese have engaged in a new "intru-
sion"; however, the Indians almost certainly took the
initiative in this incident, continuing their policy of
"limited advance:' China's notes have emphasized that
only its self-restraint in the face of India's "provoca-
tions" has prevented the outbreak of serious clashes.
Peiping is probably worried that its apparent reluc-
tance to fight will encourage additional Indian advances
into Chinese-occupied territory, in which case the Chi-
nese might feel obligated to force back some of the more
advanced Indian outposts.
9 July 62 DAILY BRIE F
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Goulart Nominates Francisco Brochado da Rocha as
Prime Minister
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Y/Tlocha, who has been described by US officials as
and "one of the cleverest lawyers in
southern Brazil," has been conspicuous in showing hos -
tility toward US-owned public utilities. He played the
most important legal role in the expropriation of the
Rio Grande do Sul subsidiary of the Electric Bond and
Share Corporation in 1959. As State Secretary of In-
terior and Justice he commented that Brizola's expro-
priation of the Rio Grande do Sul subsidiary of Interna-
tional Telephone and Telegraph Company "could. be the
first of a series of similar actions which the govern-
ment of Rio Grande do Sul may be forced to take to de-
fend the people of the state from the yoke and plunder
of foreign capital"
In October 1961 Rocha was appointed by Brizola to
make an investigation--evidently intended to vindicate
the state government--of accusations that Brizola's ad-
ministration was favoring certain Communist activities.
In March 1962 Rocha was questioned about three Cuban
planes which had flown that month between Havana and
Porto Alegre but had been allowed. to leave the names
and nationalities of passengers unrecorded. Rocha said
publicly that he took responsibility but did not explain
the flights except to say that they were between two
friendly countries.
Rocha was reportedly a key supporter of Goulart
in August 1961 when army leaders opposed. his acces-
sion to the presidency after the resignation of Janio
Quadros.
Under the Brazilian parliamentary system, the
President may nominate only three candidates for the
prime ministry whereupon nomination becomes the pre-
rogative of the Senate. In the present crisis, however,
Goulart's second nominee was confirmed, with the re-
sult that Rocha's rejection legally could be followed by
two more presidential choices. A prolongation of the
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 Approved For Releas
crisis would, however, seriously increase opposi-
tion to Goulart.
Marshal Mendes de Moraes, who is a federal
deity, plans to make a speech in the Chamber of
Deputies stating that the military will guarantee the
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freedom of congress to decide the political problem.
He also claims to have support for taking over the
Ministry of War to counter Goulart if the President
attempts to call a general strike to support his
choice of Rocha. The 68-year-old Mendes probably
lacks sufficient prestige within the armed forces to
be the leader of such intervention in the governmen
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 Approved For
THE PRESIDENT
The Vice President
Executive Offices of the White House
Special Counsel to the President
Military Representative of the President
The Special Assistant for National Security Affairs
The Scientific Adviser to the President
The Director of the Budget
The Director, Office of Emergency Planning
The Director, National Aeronautics and Space Administration
The Department of State
The Secretary of State
The Under Secretary of State
The Under Secretary of State for Political Affairs
The Deputy Under Secretary of State for Political Affairs
The Counselor and Chairman of the Policy Planning Council
The Director of Intelligence and Research
The Treasury Department
The Secretary of the Treasury
The Under Secretary of the Treasury
The Department of Defense
The Secretary of Defense
The Deputy Secretary of Defense
The Secretary of the Army
The Secretary of the Navy
The Secretary of the Air Force
The Assistant Secretary of Defense (International Security Affairs)
The Assistant Secretary of Defense
The Chairman, The Joint Chiefs of Staff
Chief of Naval Operations, United States Navy
Chief of Staff, United States Air Force
Chief of Staff, United States Army
Commandant, United States Marine Corps
U.S. Rep., Military Committee and Standing Group, NATO
Supreme Allied Commander, Europe
Commander in Chief, Pacific
The Director, Defense Intelligence Agency
The Director, The Joint Staff
The Director for Intelligence, The Joint Staff
The Assistant Chief of Staff for Intelligence, Department of Army
The Director of Naval Intelligence, Department of Navy
The Assistant Chief of Staff, Intelligence, Department of the Air Force
The Department of Justice
The Attorney General
The Federal Bureau of Investigation
The Director
The Atomic Energy Commission
The Chairman
The National Security Agency
The Director
The United States Information Agency
The Director
The National Indications Center
The Director
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