CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A003500500001-7
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 13
• Document Creation Date: December 15, 2016
• Document Release Date: March 22, 2004
• Sequence Number: 1
• Publication Date: January 31, 1958
• Content Type: REPORT

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31 January 1958
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CENTRAL INTELLIGENCE BULLETIN
31 January 1958
DAILY BRIEF
I. THE COMMUNIST BLOC
2
Ito
Communist China: Peiping's First Five-Year Plan,
which ended in December 1957, has shown results in the
key industrial sectors which compare favorably with the
rapid advances of the USSR's First Five-Year Plan (1927-
1932). Peiping begins its Second Five-Year Plan on a clear
note of determination and optimism, and the economy will
probably continue, to expand at about the same rate (6-7 per-
cent) during the next five years, provided that the regime is
able to obtain the necessary peasant cooperation.
II. ASIA-AFRICA
Egyptian-Syrian union: Nasir remains preoccupied with
the form which Egyptian-Syrian union may take and with the
personnel problems involved. Views on these subjects are
shifting daily in Cairo. Damascus, however, continues steps
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toward union with undiminished momentum, and reservations
held by some Syrians and Egyptians may not forestall an an-
nouncement of union. Second thoughts about union are likely
to increase among both Egyptians and Syrians as its difficult-
ies and disadvantages come to the fore.
Morocco: The Moroccan Government, conscious of
American and British sales of arms to Tunisia last fall,
is also attempting to break away from the controls Paris
and Madrid maintain over the supply of the Royal Moroc-
can Army. Rabat has approached Rome for military sup-
plies and assistance in constructing an ammunition factory,
and Foreign Minister Balafre' has threatened to seek Czech
assistance if Italy refuses.
0-42-, Afghan- Pakistani relations: Afghan King Zahir's visit
to Karachi. from 1 to 5 February begins a new round in the
exchange of state visits which began in 1956 with the aim of
improving relations between Pakistan and Afghanistan. Con-
tinuing differences over such problems as a transit agree-
ment and "Pushtoonistan" are likely to limit progress toward
any substantial cooperation between Karachi and Kabul.
Burma: Burmese Prime Minister Nuts public rejec-
tion of Marxism on 29 January as a guiding political philos-
ophy is his most forthright repudiation of Communist meth-
ods in favor of democratic procedures. He thus joins Prince
Sinahouk of Cambodia as the second leader of a neutral South-
east Asian country openly to denounce international .Communism
31 Jan 58 DAILY BRIEF iii
NOW
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in the past few weeks. Neither leader is likely to abandon
his attachment to the principle of neutrality
(Page 4)
Indonesia: The resignation of the Djuanda cabinet has
been publicly cglled for by two dissident leaders, Col. Sim-
bolon and Col. Djambek, in Sumatra. Their demand may
be the prelude of an ultimatum to Djakarta. They also sug-
gested that Acting President Sartono nominate former Vice
President Hatta and the Sultan of Jogjakarta to form a new
cabinet.
On the basis of findings by its Watch Committee, the
Intelligence Advipory Committee concludes That :there is no
evidence of Sino-Soviet intention to become militarily in-
volved in the Indonesian situation. There is evidence that
dissident leaders on Sumatra plan to issue an ultimatum in
early February requiring changes in the central government
and posing the threat of a rival government. Continued fail-
ure to resolve the basic differences between the central gov-
ernment and the dissident leaders would lead to a situation
even more favorable to the Communists,on Java. F_ -1
1, IME,
ME I
"EM
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31 Jan 58
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I. THE COMMUNIST BLOC
No back-up material.
II. ASIA-AFRICA
Morocco Presses for Italian Arms Assistance
The Moroccan Government, conscious of American
and British sales of arms to Tunisia last fall to avert the
possibility of Tunisian procurement of bloc arms, is also
attempting to break away from the controls Paris and
Madrid maintain over equipment supplied to the Royal
Moroccan Army.
Early last November Rabat asked for Italian technical
assistance in constructing and operating a small-arms am-
munition factory and the ad interim supply of small-arms
ammunition. Later that month, Moroccan officials requested
similar assistance from Washington
On 16 January, Foreign Minister Balafrej, following up
the November approach, threatened to seek Czech assistance
if Italy did not supply the ammunition considered essential
for internal security purposes. The Italian Embassy in Rabat
does not expect a favorable response from Rome. Czecho-
slovakia maintains a permanent economic mission in Rabat
and on 22 November concluded a trade agreement with
Morocco. This agreement might serve as the vehicle for
Czech arms assistance.
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Afghan King Zahir Shah's Visit to Pakistan
The state visit to Pakistan planned by Afghan King
Zahir from 1 to 5 February will open a new round in the
effort to improve relations between Afghanistan and
Pakistan. His trip has been planned as a:further demon-
stration of the more conciliatory attitude in Karachi and
Kabul since 1956, when an exchange of official visits was
begun with Pakistani President Mirza's trip to Afghanistan.
Zahir Shah's visit was originally scheduled for December,
but had to be postponed because of the fall of the Pakistani
Government.
The Afghan King's presence in Karachi will provide an
opportunity for discussing additional means of increasing
cooperation between the two countries, the most important
of which is the proposed agreement on transit facilities for
Afghan trade. Specific negotiations, however, probably will
take place later at the ministerial level.
Continuing differences over such problems as transit
arrangements, as well as mutual distrust on the question of
"Pushtoonistan," are likely to limit progress toward any
substantial cooperation between Karachi and Kabul.
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Burmese Premier Rejects Marxism
Premier U Nu, in a major speech to the national
congress of the governing Anti-Fascist People's Free-
dom League on 29 January, rejected Marxism. as a
guilding political philosophy. He promised that Burma
would not accept any program leading to the dictator-
ship of the proletariat or any other kind of dictatorship.
Nu stated that in developing a socialist state in Burma,
the government would use only democratic means.
Nu's statement points up the degree to which Burma's
leaders have dropped rigidly doctrinaire socialism. Their
commitment to democratic socialism was also underscored
by Deputy Prime Minister Kyaw Nyein, on his return from
a long tour of the Sino-Soviet bloc in early January, when
he pointed out the difference between the one-party dictator-
ships in Communist countries and. parliamentary democracy
in Burma.
U Nu is the second prominent Southeast Asian neutral-
ist recently to denounce Communist practices. Cambodian
Crown Prince Sihanouk is continuing his attack on interna-
tional Communism which began early this month. At a
Cambodian youth rally, Sinahouk criticized "international
socialism which is Communist and serves external interests."
He is also reported to have blocked acceptance of 20 Soviet
scholarships.
Neither Burma nor Cambodia, however, is likely to
alter its strictly, neutral international position in the fore-
seeable future.
III. THE WEST
No back-up material.
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DISTRIBUTION
THE PRESIDENT
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Special Assistant for National Security Affairs
Scientific Adviser to the President
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Office of Defense Mobilization
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Board of Consultants on Foreign Intelligence Activities
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The Treasury Department
The Secretary of the Treasury
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The Deputy Under Secretary for Administration
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The Counselor
Director, International Cooperation 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
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United States Information Agency
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CENTRAL INTELLIGENCE BULLETIN
25X1
31 January 1958
DAILY BRIEF
Communist China: Peiping's r'irst rive- xear "J")
which en ed in December 1957, has shown results in the
key industrial sectors which compare favorably with the
rapid advances of the USSR's :First Five-Year Plan .(1.927-
1932). Peiping begins its Second Five-Year Plan on a clear
note of determination and optimism, and the economy will
probably continue, to expand at about the same rate (6-7 per-
cent) during the next five years, provided that the regime is
able to obtain the necessary peasant cooperation.
I I
171siida-raxlstani relations: Afghan King Zahir's visit
to Karachi from 1 to 5 February begins a new round in the
exchange of state visits which began in 1956 with the aim of
improving relations between Pakistan and Afghanistan. Con-
tinuing differences over such problems as a transit agree-
ment and "Pushtoonistan" are likely to limit progress toward
any substantial cooperation between Karachi and Kabul.
Burma: Burmese Prime Minister Nu's public rejec-
tion of Marxism on 29 January as a guiding political philos-
ophy is his most forthright repudiation of Communist meth-
ods in favor of democratic procedures. He thus joins Prince
Sinahouk of Cambodia as the second leader of a neutral South-
east Asian country openly to denounce international .Communism
in the past few weeks. Neither leader is likely to abandon
his attachment to the principle of neutrality.
(Page 4)
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Indonesia: The resignation of the Djuanda cabinet has
been publicly called for by two dissident leaders, Col. Sim-
bolon and Col. Djambek, in Sumatra. Their demand may
be the prelude of an ultimatum to Djakarta. They also sug-
gested that Acting President Sartono nominate former Vice
President Hatta and the Sultan of Jo 'akart to form a new
cabinet.
On the basis of findings by its Watch Committee, the
Intelligence Advipory Committee concludes that there is no
evidence of Sino-Soviet intention to become militarily in-
volved in the Indonesian situation. There is evidence that
dissident leaders on Sumatra plan to issue an ultimatum in
early February requiring changes in the central government
and, posing the threat of a rival government. Continued fail-
ure to resolve the basic differences between the central gov-
erert~l~~(iee~t;At~>1~7~@ik9i41-7
even more favorable to th