CENTRAL INTELLIGENCE BULLETIN - 1960/01/08

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03184092
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 13
• Document Creation Date: March 17, 2020
• Document Release Date: March 26, 2020
• Publication Date: January 8, 1960

Approved for Release. 2020/03/13 C03184092
3.5(c)
eatumerr NO. 6
NO SHANE IN CLASS. 71g.
0E.GLASSIC4kI1l
OLASS. Of NUL 7C: TO S 0
NE/Cr Row; .2.0
MJTH 1.4
NATE:6 JUN. 1280enrawim
3.3(h)(2)
8 January 1960
Copy No. C 67
CENTRAL
INTELLIGENCE
BULLETIN
-TOP-SECRET-
Approved for Release: 2020/03/13 C03184092
Approved for Release: 2020/03/13 C03184092
Ask
TOP SECRET
Approved for Release: 2020/03/13 C03184092
ll,.I.
�
8 JANUARY 1960
I. THE COMMUNIST BLOC
Approved for Release: 2020/03/13 C03184092�
.f4/41i.0
Flow of Tibetan refugees into Nepal in-
creases; rumors of Chinese Communist
incursions continue.
II. AS1A-AFRICA
Laos--Balanced composition of new pro-
visional government should ease strains
among various non-Communist groups.
Burmese premier rejects invitation to
Peiping for border negotiations.
Afghan premier accepts Iranian invitation
to discuss Helmand waters dispute.
Libya may press for major change in
American base agreement.
liii. r'l'HE WEST
Italian premier's resignation this month
predicted by prominent Christian Demo-
crats; Gronchi postpones visit to Moscow.�
LATE ITEM
0 USSR makes first public announcement
of planned rocket flight tests within spe-
cific time period.
TOP SECRET
Approved for Release: 2020/03/13 C03184092
Approved for Release: 2020/03/13 C03184092
%re �..,
CENTRAL INTELLIGENCE BULLETIN
8 January 1960
DAILY BRIEF
L THE COMMUNIST BLOC
Communist China - Nepal: The flow of Tibetan refugees
into Nepal has increased marked17 during recent weeks, pos
sibly as a result of reported Chinese troop movements west-
ward along the undemarcated frontier. Rumors of sporadic
Chinese incursions continif. Prime Minister Koirala�
Is thinking of sending a note to
Peiping protesting two Chinese intrusions in western Nepal; the
Nepalese Government, however, continues publicly to deny any
incursions and to minimize the threat from China, apparently
hoping to avoid involvemput in the ginn-indi an hrrrrical. fai.iif
II. ASIA-AFRICA
Laos: The balanced composition of the provisional govern-
ment appointed by the King on 7 January should ease the strains
among the various non-Communist groups. The new premier is
respected elder statesman Khou Abhay; he is the brother of Nhouy
Abhay, who had been named by the King to select a new cabinet.
The cabinet comprises four independents, three old-guard politi-
cians, and three members of the young reformist group (CDNI).
The primary mission of the new government is to prepare for gen-
eral elections later this year. (Page 1)
Burma - Communist China:
Burmese Premier Ne Win on 3 January re-
jectea unmese Communist Premier Chou En-lai's recent invita-
tion to come to Peiping to negotiate the Sino-Burmese border issue,
reiterating that Burma had already made its maximum concessions.
Ne Win added, however, that if China would accept in advance Bur-
ma's proposals of last June, he would be willing to come to Peipi
this month to initial a border agreement. although the Chines_ej
NNNN
kz,
Approved for Release: 2020/03/13 C03184092
\
Approved for Release: 2020/03/13 C03184092
%
_
_I'obably will again reject the June "package plan" and insist
that "further negotiations" are necessary, they have played
down differences between the two countries.
1 Chou En-lai, in an apparent ef-
fort to underscore China's desire for Burmese good will, at-
tended the Burmese Embassy's independence day reception
this week in Peiping, his first appearance at a non-Commu-
nist reception for some monthR1
zu ucuuzLcup-LL cui. Ltuguctii rrime RUMS cer .uaua nas ac-
cepted Iranian Prime Minister Eqbal's invitation to discuss
the dispute over the division of the Helmand River waters,
Daud intends to
stop off in Tehran for three or four days on his way to Europe
for medical treatment probably sometime after mid-January.
Daud's willingness to leave the country probably indicates that
he feels the unsettling effects of the Kandahar riots and of the
recent death of the influential Shah Mahmud have been overcomyg
(Page 2)
Libya: (the Libyan undersecretary of finance has informed
an American official in Bengasi that Libya will seek substan-
tial modification of the American base agreement if necessary to
get "satisfactory" payment for American use of Wheelus Air
Base. As an alternative to the present aid program, he pro-
poses assessment of customs duties on Wheelus Base imports
which he claims would bring in some $28,000,000 per year. If
the US refuses this, he said, Libya could then go to the UN and
ask that US forces be moved out of the country. While it re-
mains to be seen how strongly the government may follow through
on the undersecretary's proposal, there is strong dissatisfaction
in the Libyan Government with present American aid commit-
ments�. (Page 3)
III. THE WEST
Italy: There are increasing signs of conflict, within the
Christian Democratic party and between it and its allies, which
id,7)
8 Jan 60
DAILY BRIEF ii
TOP SECRET
\1"-*
�
Approved for Release: 2020/03/13 C03184092
aaa 'M�& ,`�t,
' '
Approved for Release: 2020/03/13 C03184092
_
titre
Zhreatens the tenure of the Segni government. Prominent
e.� hristian Democrats are predicting that Segni may resign
before the end of January. President Gronchi is deeply in-
volved in the current political maneuverings, and the last-
minute postponement of his trip to Moscow, which had been
scheduled to start on 7 January, may have been occasioned
by his concern over the possibility of a cabinet crisis rather
than by illness, as publicly announced
(Page 4)
LATE ITEM
*USSR: The TASS announcement on 7 January that flight
tests of a more powerful rocket booster for space vehicles
would be undertaken between 15 January and 15 February
1960 is the first public Soviet announcement that such tests
wouldbe made within specified dates. The reported impact
area covers about 45,000 square miles of the Pacific with the
center about 550 miles south of Johnston Island and 400 miles
west-northwest of Palmyra Island, The USSR says Soviet ships
will be in the impact area, and asks other governments to re-
frain from sending ships or aircraft into the area during the
specified time period.
On 7 January, three of the four Soviet Sibir-class instru-
mentation ships were observed stopped in the water about 400
miles southwest of Midway, some 1,200 miles northwest of the
reported impact area. The fourth ship was located about 560
miles west-northwest of Midway. These ships participated in
a practice exercise with the Tyura Tam rangehead on 6 January.
The validity of the Soviet statement that the projected tests
will be in development of a more powerful rocket system for
space vehicles cannot be determined at this time. The center
of the impact area is about 6,500 miles from the Tyura Tam
rangehead. Current estimates give the Soviet ICBM a range of
5,500 to 7,500 miles depending on the weight of the nosecone.
The Soviets are considered capable of testing to this range dur-
ing the time period specified or before, if they so choose.
8 Jan 60
DAILY BRIEF iii
�,1!.Aaarxr:7�W''"'s""`"' ��,
�
. . �
�NMRM
Approved for Release: 2020/03/13 C03184092
\'�
LI
\Z=TrizzzRa763/13
C031840911:
IV. SIGNIFICANT INTELLIGENCE
REPORTS AND ESTIMATES
(Available during the preceding week)
Situation in the Caribbean Through 1960. SNIE 80-1-59.
29 Dec 1959.
8 Jan 60
DAILY -BRIEF iv
TOP SECRET
�
Approved for Release: 2020/03/13 C03184092
Approved for Release: 2020/03/13 C03184092
V B.-4L 1 1 1-11,
1411101
I. THE COMMUNIST BLOC
ASIA-AFRICA.
New Government in Laos
The balanced composition of the provisional government
appointed by the King on 7 January should ease the strains be-
tween the various non-Communist groups. Khou Abhay, the
new premier, is a respected elder statesman whose most re-
cent position was as president of the King's Council. In addi-
tion to Khou, three other political independents are in the cab-
inet, including Khou's brother, Nhouy Abhay, who reportedly
selected the cabinet and who will serve as deputy prime minister
and minister of education. The remaining six portfolios are
split evenly between the reformist Committee for Defense of
National Interests (CDNI), which will control the key ministries
of foreign affairs, defense, and finance, and former Premier
Phours Rally of the Lao People (RLP) which will control, among
other posts, the interior ministry. Minister of Defense General
Phoumi, an important CDNI leader, is the only military figure
in the cabinet.
The cabinet appears to be a generally capable one and is
probably the best that could have been obtained under present
political conditions in Laos. Its main function will be to prepare
the country for general elections later this year. In the process,
there is likely to be considerable jockeying between the CDNI and
the RLP, but in view of the CDNI's enhanced power position, it
will probably have the predominant voice in choosing the candi-
dates for the anti-Communist slate.
Many of the new cabinet members are close to the King, who
may play a more active, if still indirect, role in governmental
affairs.
8 Jan 60
-C-ONREE-
CENTRAL INTELLIGENCE BULLETIN
Approved for Release: 2020/03/13 C03184092
Page 1
Approved for Release: 2020/03/13 C03184092
Afghan Prime Minister Daud to Visit Tehran to Discuss
Helmand Dispute
afghan Prime Minister Daud has accepted Iranian Prime
Minister Eqbal's invitation to discuss the dispute over the di-
vision of theHe1niancLRiver waters,
Daud intends to stop off in Tehran for�
ree or four days on his way to Europe for medical treatment,
but he has asked that there be no official ceremonies. No date
for the visit has yet been set. Daud will probably wait until
after the visit of his brother, Foreign Minister Naim, to Pak-
istan beginning 10 Januaryq
Iranian Government has long been concerned that Hel-
mand delta lands in Iran may be deprived of minimum water
requirements by the development of irrigation projects along
the Helmand River within Afghanistan. Tehran has repeatedly
urged negotiations in an effort to secure a guarantee of a satis-
factory volume of Helmand water for Iran. Iran's concern has
apparently been heightened by Afghanistan's recent expressions
of interest in building a new diversion dam near the bordel.
ale talks may improve relations between Afghanistan and
Iran, but a settlement of the dispute seems unlikely at this time.
Tehran wants a guarantee of 35 cubic meters of water per sec-
ond and has already turned down a neutral commission's recom-
mendation of 22 meters in 1950 and a subseciuent offer of 26 bv
the Afghan King.
ud's postponement of his trip to Europe, originally set
for December, was presumably attributable to the recent riots
in the city of Kandahar. His new plans suggest that he believes
the threat of further defiance of government authority is nassince-7
TOP SECRET DAUNT
8 Jan 60 CENTRAL INTELLIGENCE BULLETIN Page 2
Approved for Release: 2020/03/13 C03184092
Approved for Release: 2020/03/13 C03184092
Noe' Sue
Libyan Pressures For More J,JS Aid With Fewer Controls
/Libyan officAls are continuing &heir pressure for more
US financial aid and fewer controls on expenditure as the
price for American air-base rights in Libya. Libyan Un-
dersecretary of Finance Shaglouf has informed an American
official in Bengasi that, as an alternate to the present aid
program, he proposes assessment of customs duties on
Wheelus Base imports, which he claims would bring in
some $28,000,000 per year--all of it completely under Lib-
yan control. Shaglouf feels that if the United States should
refuse to modify the base agreement to permit this, the
Libyan Government should then go to the United Nations and
ask that US forces be moved out of Liby_a3
be Libyan-American base agreement, valid until 24
December 1970, was signed in 1954. In November 1958, how-
ever, the Libyan Government initiated negotiations for revi-
sion of the financial clauses of the agreement, seeking larger
US aid funds completely at the disposal of the Libyan Govern-
ment. Total US aid to Libya was about $25,000,000 in each of
the Libyan fiscal years 1957 and 1958 and will amount to more
than $32,000,000--including emergency drought assistance--in
the current fiscal year ending 31 March. The Libyan Govern-
ment had a completely free hand, however, in the expenditure
of only a small part of this alcL17..
he prime minister and other leading Libyan officials have
registered strong dissatisfaction with American aid proposals
for fiscal 1960, which are similar to those of the preceding
years. It is not clear how much governmental support Shaglouf
has for the change he proposes, but the Libyan Government is
almost certain to make new demands in connection with its con-
sideration of the draft budget immediately after the 17 January
parliamentary election)
8 Jan 60
CONFIDENTIAL
CENTRAL INTELLIGENCE BULLETIN
Approved for Release: 2020/03/13 C03184092
Page 3
Approved for Release: 2020/03/13 C03184092
*Assi
III. THE WEST
Threats to Segni Government
Premier Segni's minority Christian Democratic govern-
ment may soon face a crisis over whether it should seek sup-
port from the left or the right and over what stand it should
take on controversial legislation. The last-minute postpone-
ment of President Gronchrs trip to the USSR, publicly attrib-
uted to illness, may have been the result of pressure from
right-wing elements who support the government, or from
restive left-wing Christian Democrats who desire its fall.
Continued alliance witlItheright-:- Liberals, Monarchists,
and neo-Fascists--threatens to damage the showing of the
Christian Democratic Party (CD) in the nationwide local elec-
tions planned for spring, and leaves the government vulner-
able to attack by former Premier Fanfani's Christian Demo-
cratic left wing. 1anfanl is reported to have said the govern-
ment would fall in February; several prominent Christian
Democratic senators have predicted its January demise-.1
The Christian Democratic right wing and the rightist
parties supporting Segni fear a CD alliance with the Nenni
Socialists. Party Secretary Moro recently proffered a hand
to the Nenni Socialists in Sicily and publicly affirmed the anti-
conservative nature of the CD, thus alarming the government's
rightist allies.
Current issues on which either side could bring about a
cabinet fall are: a controversial antitrust bill; the nuclear
energy act, which some Christian Democrats feel would per-
mit private control of energy development; and the "green
plan" for agriculture, which will require 00,000,000 in fi-
nancing. An additional source of friction is Segnies proposal
to remove the editor of II Giorno a newspaper financed by
oil tycoon Mattel, who favors the left wing of the Christian
Democratic party.
8 Jan 60
--bbeftET
CENTRAL INTELLIGENCE BULLETIN
Page 4
Approved for Release: 2020/03/13 C03184092
Approved for Release: 2020/03/13 C03184092
'WA til7trill1711,
111
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
Director, Office of Defense and Civilian Mobilization
Director, National Aeronautics and Space Administration
Special Assistant for Security Operations Coordination
Chairman, Board of Consultants on Foreign Intelligence Activities
Special Aosistant 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 Secretzry 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 Army
Director of Naval Intelligence, Department of Navy
Assistant Chief of Staff, Intelligence, Department of the Air Force
Supreme Allied Commander, Europe
Commander in Chief, Pacific
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
Approved for Release: 2020/03/13 C03184092
,