CENTRAL INTELLIGENCE BULLETIN - 1958/01/22

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03015199
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RIPPUB
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U
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17
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January 27, 2020
Document Release Date: 
January 30, 2020
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Publication Date: 
January 22, 1958
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I ir.,,,,./MMZ/ZZ/Z/Z/Z/ZZ/ZZZ/Z/Z/Z/Z/ZZ/Zrnmzmz, Approved for Release: 2019/08/20 C03015199 I AO r" Ow 11\---1� 3.3(h)(2) Sof 3.5(c) 22 January 1958 Copy No. 137 CENTRAL INTELLIGENCE BULLETIN DOCUMENT NO. NO CHANGE IN CLASS. .1 DECLASSIFIED CLASS. CHANGED TO: TV) leo NEXT REVIEW DATE: AUTH: 2 DATE. REVIEWER: CRET tApproved for F1'efefsf: 2019/08/20 ic3 '5"1"9 A Approved ficirRele7e 72717E8/20 C03015199 Nowi Noe _w_Aft_rih es molt". wm. Approved for Release: 2019/08/20 C03015199 22 JANUARY 1958 Approved for Release: 2019/08/20 C03015199 LI New Soviet ambassador to US says Soviet leaders eager for better relations with US. Opposition to Party Secretary Ulbricht growing in East German Communist party. USSR suggests nuclear-free zone for Middle East. Egyptian-Syrian union negotiations expected to begin soon. Venezuela - General strike threatens President Perez' position. Guatemalan Congress to convene 24 January to select president. � OTHER ITEMS South Vietnam - Personal guards fire on President Diem's plane. Egypt to train Indonesian jet pilots. Turkish defense minister replaced by confidant of prime minister. Japanese irritated over US trade policies. USSR and Colombia may conclude barter agreement. Approved for Release: 2019/08/20 C03015199 Approved for Release: 2019/08/20 C03015199 1 'kJ A /...0 1,..44 a , CENTRAL INTELLIGENCE BULLETIN 22 January 1958 DAILY BRIEF I. THE COMMUNIST BLOC Ambassador-designate to the United States Men- shikov states he is personally convinced, as are Khrushchev, Mikoyan, and Bulganin, of the necessity for improvement in US-USSR relations. He has told Ambassador Thompson that this identity of views was apparently the reason for his appointment--a hint that one of Menshikov% primary assignments is to arrange high-level bilateral negotiations. (Page 1) Vigorous high-level opposition in the East German Communist party has forced party boss Ulbricht to post- pone the central committee meeting originally scheduled for 15 January. Ulbricht% hard-line economic policies-- raising work norms and stepping up collectivization of farmers and artisans�are being attacked as measures which will increase unrest rather than production. Al- though Ulbricht may be forced to make some concessions, he will probably continue to receive Soviet support to en- sure his dominant position. The USSR is now suggesting a nuclear-free zone throughout the Middle East to include specifically the Baghdad Pact area., The 21 January TASS statement is timed to influence any discussions on strengthening the northern-tier concept in the Baghdad conference starting Monday. (Page 2) (MAP) TOP SECRET 7;13=1741=71019/08/20A o15111 \ XXX\ Approved for Release: 2019/08/20 C03015199 IL 'VA au a II. ASIA-AFRICA Arrangements are being made for the training in Egypt of Indonesian pilots and technicians in the use of the jet aircraft which the Indonesians are now seeking from the bloc (Page 3) Frustration in Japan over US trade policy and its application to Japanese imports has become acute as a result of recent recommendations by the US Tariff Commission. Ambassador MacArthur in Tokyo states that a series of restrictive actions can cause major damage to the US position in Japan and will aid those forces in Japan pressing for indiscriminate trade with Communist China and the USSR. (Page 4) The Egyptian and Syrian governments probably will announce formally in the near future plans to open negotia- tions for Syrian-Egyptian union under a federal constitu- tion. The target date for completion of a draft constitu- tion is said to be August 1958, prior to Syria's scheduled parliamentary elections. Should serious negotiations be undertaken, they would be arduous because of widely dif- ferent economic and political conditions in the two coun- tries. Nasir will presumably continue his efforts to re- move Syrian Army Chief of Staff Bizri and neutralize Defense Minister Azm. The resignation of Turkish Defense Minister Semi Ergin and his replacement by Etem Menderes minister of public works and close confidant of Prime Minister Ad- nan Menderes, on 19 January is probably a repercussion of the alleged plans for an army-led coup d'etat which led to the recent arrest of at least nine army officers. This cabinet shift may foreshadow some furfhPr Ph nmrYPR in HIP Turkish military command structure. 22 Jan 58 DAILY BRIEF TOP SECRET ii N Approved for Release: 2019/08/20 C03015199 \ \ -Approved for Release: 2019/08/20 C08015199 ?fe_. The continuing danger of assassination of South Viet- namese President Ngo Dinh Diem was highlighted again on 18 January when his plane leaving Saigon airport was fired on by four army paratroopers of his guard detail. (Page 5) II L THE WEST The large plurality won in Guatemala's 19 January election by rightist presidential candidate Ydigoras has presented the congress and the army with a dilemma. Congress, which is constitutionally charged with choos- ing between the two top runners, contains a strong anti- Ydigoras majority. If it refuses to name Ycligoras pres- ident after it convenes on 24 January, serious public disorders are likely. (Page 6) *The position of Venezuelan President Perez is threat- ened by a general strike which began in Caracas on 21 Jan- uary. Street rioting has resulted in 33 deaths, many in- jured, and about 1,000 arrests. A state of siege has been declared and further violence may be expected. If the strike continues, the military now backing Perez may decide to oust him to check the mounting civilian opposition. (Page 7) Recent trade negotiations between the Soviet Union and several Latin American countries refl t increased Latin American interest in Soviet bloc trade. ) (Page 8) 22 Jan 58 DAILY BRIEF iii TOP SECRET 14�p-rOViedTOTKereaSseT2019/08/20 C0301F1'9 _Approved for Release: 2019/08/20 C03015199 T...01.0.1. TA" JULAF.a.s.s.V a. ALA in. -*owl I. THE COMMUNIST BLOC Menshikov Stresses Importance of Bilateral Talks To Improve Soviet-American Relations Soviet Ambassador-designate to the United States Mikhail Menshikov told Ambassador Thompson on 20 January that he is personally convinced, as are Khru- shchev? Mikoyan, and Bulganin, that it is essential to Improve. Soviet-American relations. He expressed the belief that this identity of views was apparently the reason for his appointment. He stressed the im- portance of contacts between top leaders and of taking some small steps toward improving relations. Menshikov's remarks sug- gest that one of his major aims will be to arrange high-level bilateral negotiations. He sug- gested that even if no specific problem were taken up, con- tacts between leaders would be more useful than a large sum= mit conference. Soviet offi- cials during the past two months have privately urged direct talks, and Premier Bulganin's recent letters asserted that the USSR "always welcomes" bilateral consultations. Thompson considers that Menshikov's close relationship with 1Vlikoyan over a period of years could give him more influence in Moscow than his predecessor. CONFIDENTb4t- 22 Jan 58 CENTRAL INTELLIGENCE BULLETIN Page 1 Approved for Release: 2019/08/20 C03015199 Approved for Release: 2019/08/20 C03015199 or�-��ANIA- D1,161. EA [OWN" ISCIOANI USSR *AUDI *NADIA 1---Middle East Members of the Baghdad Pact CHINA INDIA 24017 Approved for Release: 2019/08/20 C03015199 Approved for Release: 2019/08/20�003015199 Soviet Statement on Baghdad Pact Council Meeting The TASS statement of 21 January on the forthcom- ing session of the Baghdad Pact council in Ankara is another step in Moscow's campaign to charge the United States with the responsibility for blocking an East-West detente. The statement is intended to forestall any moves to establish American missile bases in the Middle East and to underline the USSR's posture as the champion of Arab nationalism and neutralism. Charging that the Ankara meeting will be a "continu- ation" of the recent NATO heads of government conference in Paris, TASS asserted that the United States will attempt to force Baghdad Pact members to accept American bases for nuclear and rocket weapons. It warned that alleged American plans to unite the Baghdad Pact and SEATO with NATO would expose the members of these alliances to the "flames of missiles and atomic war" should a conflict break out in another part of the world. TASS attempted to create the impression of a cleavage between Turkey, Britain and the United States, on the one hand, and Iraq, Iran and Pakistan on the other. Turkey, along with the United States, was the main target. TASS warned that the stationing of nuclear weapons and rocket bases in Turkey "would be a great threat to the people of the Middle East." In line with Moscow's recent proposals to extend the Rapacki Plan for a nuclear-free zone in Central Europe to cover the Scandinavian countries, Italy and Albania, TASS declared that the Middle East should also become a "zone of peace free of nuclear and rocket weapons." Neutralist elements in the Middle East probably will receive this pro- posal with enthusiasm, while pro-Western leaders will have difficulty in opposing it publicly. ( CONFIDENTIAL 22 Jan 58 CENTRAL INTELLIGENCE BULLETIN Page 2 Approved for Release: 2019/08/20 C03015199 'Approved for Release: 2019/08/20 C03015199 Nes* II. ASIA-AFRICA Indonesian Jet Pilots and Technicians to Be Trained in Egypt Arrangements are being made for the training in Egypt of Indonesian pilots and technicians in the use of the jet aircraft, including bombers, which the Indone- sians are now seeking from the bloc. Indonesian technical person- nel can be sent immediately for training, while pilots should arrive later. This arrangement is similar to the one under which Syrian pilots were trained in Egypt Agreement on this training apparently was reached by the Indonesian arms purchasing mission which visited Cairo in early January before going to Yugoslavia and bloc countries in Eastern Europe. Indonesia nopea Dim planes could be delivered through Egypt to avoid a re- volt of anti- Communist groups in Indonesia. Indonesia believe that the announcement of a bloc arms deal, however disguised, would be regarded by Indonesian regional leaders as sufficient grounds for severing all ties with Djakarta. From an air capabilities standpoint, the acquisition of Soviet-type bomber aircraft by the Indonesian Air Force would be of no immediate significance, since it is esti- mated that it would require a minimum of eight months for Indonesian bomber crews to acquire a basic combat-ready status. At present the Indonesian Air Force has no jet bomber aircraft, 10 pilots with minimum capabilities in jet trainer aircraft, and only 10 qualified piston bomber pilots and 10 navigators. Also, there are only three air- fields in Indonesia�all on the island of Java�capable of supporting jet light bomber aircraft. TOP SECRET 22 Jan 58 CENTRAL INTELLIGENCE BULLETIN Page 3 Approved for Release: 2019/08/20 C03015199 Approved for Release: 2019/08/20 C03015199 LieLAU T .16" JILIJNILLL V.&417-6.11 'fed Japan Alarmed by US Trade Restrictions Ambassador MacArthur reports that frustration in Japan over US trade policy and its application to Jap- anese imports has become acute as a result of recent recommendations by the US Tariff Commission for in- creased rates on certain Japanese commodities. He warns that more restrictions can cause major damage to the US position in Japan, prompt many pro-American Japanese to re-examine critically the economic benefits derived from continued close association with the US, and assist those forces pressing for indiscriminate trade with Communist China and the USSR. Japanese producers in other industries which depend upon the American market will regard the US decision as an indication of the treatment Japanese products generally will receive in the future. Japan's trade deficit with the US was approximately $500,000,000 in 1956 and about $900,000,000 for the first ten months of 1957. These deficits have been offset to a considerable extent by dollar earnings from US forces in Japan, but these receipts are being reduced as US forces withdraw. CONFIDENTIAL 22 Jan 58 CENTRAL INTELLIGENCE BULLETIN Page 4 Approved for Release: 2019/08/20 C03015199 Approved for Release: 2-61/08/20 C03015199 `RIM? Nair Personal Guards Fire on President Diem's Plane The continuing danger of assassination of South Viet- namese President Ngo Dinh Diem was highlighted again on 18 January when his plane leaving Saigon airport was fired on by four army paratroopers assigned to his guard detail. There are indications that this incident, was instigated by non-Communist opponents of Diem. The Vietnamese Govern- ment has clamped a tight news blackout on the affair, and Saigon officials deny any knowledge of it. This is the second known attempt on Diem's life in less than a year. Last February, a cabinet member was seriously wounded in an unsuccessful pistol attack on Diem by an alleged religious sect fanatic. Although these attacks were apparently carried out by non-Communist elements, Viet Minh Communist complicity cannot be discounted in either case. Communist cadres, as well as the remnants of other anti-Diem political elements, are still active in many areas of South Vietnam. These forces constitute a threat to the President's life) especially during his exposure in frequent inspection trips to outlying areas. Despite the steady growth of the government's admin- istrative effectiveness, Diem's sudden removal from leader- ship would seriously jeopardize South Vietnam's political sta- bility and continued progress as a strong anti-Communist state. 22 Jan Jan 58 CENTRAL INTELLIGENCE BULLETIN Page 5 Approved for Release: 2019/08/20 C03015199 Approved for Release: 2019/08/20 C03015199 vs, THE WEST The Post-Election Situation in Guatemala The 19 January elections in Guatemala have produced a potentially explosive situation. Unofficial returns give rightist Ydigoras a clear plurality, while centrist Cruz Salazar appears second, and leftist Mendez Montenegro trails. The Congress, which meets on 24 January, is consti- tutionally charged with choosing between the two leading candidates when there is no majority vote. The controlling moderates in Congress are strongly opposed to Ydigoras and may choose Cruz Salazar instead if he is clearly in sec- ond place. The Congress may, on the other hand, simply dissolve, thus inviting a military coup. Some influential army officers intensely dislike Ydigoras. Ydigoras announced on 20 January that he expects Con- gress to select him and implied that, if it does not, his sup- porters will resort to mob action. Earlier, he threatened "civil war" if robbed of victory. The Communist-infiltrated Revolutionary party also declared on 20 January that Ydigoras should be named by Congress. 22 Jan 58 CENTRAL INTELLIGENCE BULLETIN Page 6 Approved for Release: 2019/08/20 C03015199 Approved for Release: 2019/08/20 C03015199 "Nino' �10 Venezuelan General Strike Threatens Position Of President Perez The position of Venezuelan President Perez is threat- ened by a general strike which began in Caracas on 21 Jan- uary. The chief sponsor of the strike appears to be the Junta Patriotica which is composed of various civilian ele- ments opposing Perez0 street rioting has resulted in 33 deaths, many injured� an estimated 1,000 arrests, and considerable property damage. The government has declared ,a state of siege and called out troops to check the violence which police and national guard have apparently been unable to control. The protest movement has widespread support from a large number of prominent Venezuelans, the press, stu- dents and some worker groups. Moreover, the organizers of the strike have apparently made contact with dissident military groups to win their co-operation. elements of varying size in all armed forces components may defect if the strike appears to be successful. Perez has moved decisively to bolster his authority since the revolt of 1-2 January and the cabinet shake-up dictated to him by the armed forces on 10 January. His control over the realigned military, however, remains un- certain. Division within the military and the rapid changes in top command positions and in the government have appar- ently confused all ranks of officers, who are probably watch- ing the trend of the power struggle before fully committing their support. If the strike and violence continue, the military now backing Perez may oust him in order to conciliate the mount- ing civilian opposition. 22 Jan 58 CENTRAL INTELLIGENCE BULLETIN Page 7 Approved for Release: 2019/08/20 C03015199 Approved for Release: 2019/08/20 C03015199 e Soviet Commercial Negotiations in Latin America A semiofficial $30,000,000 barter agreement between Colombia and the USSR, involving coffee from Colombia in exchange for agricultural machinery and possibly wheat from the USSR, appears to have reached the final stages of negotiation. In a press interview in Bogota, the two So- viet commercial agents negotiating the coffee contract stated that the USSR could sell Colombia industrial and precision machinery, chemicals, and primary materials on long-term credit at a rate of 2 or 3 percent. Deteriorating economic conditions in Argentina and the depressed prices of primary products such as Colombian coffee and Chilean copper have led to a growing interest by these countries in the recently intensified Soviet bloc eco- nomic offensive in Latin America. Chile is considering the sale of 15,000 metric tons of copper wire worth $10,000,000 to the USSR. Argentina has Just sent a trade mission to the bloc seeking electronic and petroleum industry equipment to be purchased with the approximately $30,000,000 trade sur- plus with the bloc. The Brazilian cabinet is considering its policy toward recent Soviet bloc overtures for increased trade. In Uruguay, the Soviet Embassy is attempting to pro- mote a barter agreement involving Uruguayan meat in ex- change for Soviet trucks and agricultural machinery. Gavnareate, 22 Jan 58 CENTRAL INTELLIGENCE BULLETIN Page 8 Approved for Release: 2019/08/20 C03015199 Approved for Release: 2019/08/20 C03015199 'Awe? *Ng DISTRIBUTION 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 Mobilization Operations Coordinating Board Board of Consultants on Foreign Intelligence Activities Special Assistant for Foreign Economic Policy The Treasury Department The Secretary of the Treasury The Department of State The Secretary of State The Under-Secretary of State The Counselor The Deputy Under-Secretary for Political Affairs The Deputy Under-Secretary for Economic Affairs The Deputy Under-Secretary for Administration Director of Intelligence and Research 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 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 Deputy Director for Intelligence, The Joint Staff Assistant Chief of Staff, 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 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 404-k mennrinirmarmr AT Approved for Release: 2019/08/20 C03015199 �Approved for Release: 20 9/08/20 C03015199 CENTRAL INTELLIGENCE BULLETIN 22 January 1958 DAILY BRIEF I. THE COMMUNIST BLOC Ambassador-designate to the United States Men- shikov states he is personally convinced, as are Khrushchev, Mikoyan, and Bulganin, of the necessity for improvement in US-USSR relations. He has told Ambassador Thompson that this identity of views was apparently the reason for his appointment--a hint that one of Menshikov's primary assignments is to arrange high-level bilateral negotiations. (Page 1) The USSR is now suggesting a nuclear-free zone throughout the Middle East to include specifically the Baghdad Pact area. The 21 January TASS statement is timed to influence any discussions on strengthening the northern-tier concept in the Baghdad conference starting Monday. (Page 2) (MAP) Arrangements are being made for the training in Egypt of Indonesian pilots and technicians in the use of the jet aircraft which the Indonesians are now seeking from the bloc. (Page 3) The Egyptian and Syrian governments probably will announce formally in the; near future plans to open negotia- tions for Syrian-Egyptian union under a federal constitu- tion. The target date for completion of a draft constitu- tion is said to be August 1958, prior to Syria's scheduled parliamentary elections. Should serious negotiations be undertaken, they would be arduous because of widely dif- ferent economic and political conditions in the two coun- tries. Nasir will presumably continue his efforts to re- move Syrian Army Chie of Staff Bizri and neutralize bere'nee Itnister Azni. The large plurality won in Guatemalals 19 January election by rightist presidential candidate Ydigoras has presented the congress and the army with a dilemma. Congress, which is constitutionally charged with choos- ing between the two top runners, contains a strong anti- Ydigoras majority. If it refuses to name Ydigoras pres- ident after it convenes on 24 January, serious public disorders are likely. (Page 6) The position of Venezuelan President Perez is threat- ened by a general strike which began in Caracas on 21 Jan- uary. Street rioting has resulted in 33 deaths, many in- jured, and about 1,000 arrests. A state of siege has been declared and further violence may be expected. If the strike continues, the military now backing Perez may decide to oust him to check the mounting civilian opposition. (Page 7) Recent trade negotiations between the Soviet Union and several Latin American countries reflect increased Latin American inbApproved for Release: 2019/08/0 IC03015199 (Page 8)