CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A005300470001-1
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 12
• Document Creation Date: December 12, 2016
• Document Release Date: June 26, 2002
• Sequence Number: 1
• Publication Date: October 25, 1960
• Content Type: REPORT

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CENTRAL INTELLIGENCE BULLETIN
25 October 1960
DAIL1~ BRIEF
I. THE COMMUNIST BLOC
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world hopes for disarmament by engaging in fruitless discus- .
sions with those who seek only "control without disarmamento'
basis for negotiations, and provide justification for demand
ing a special General Assembly session on disarmament
early next spring. Bloc propaganda :accompanying such a
walkout would probably echo the earlier claim, made after
the bloc withdrawal from the ten nation disarmament cone
ference in Geneva last June, that the USSR refuses to abuse
USSR~UNo~he Soviet bloc delegations plan to stage
an early walkout from the disarmament discussions in the
U:N' Political Committee following the presentations of the
neutrals and ossibl Britain,
The
Soviet Union may feel this will create pressure on the West
to accept Moscow's concept of universal disarmament as the
II~ ASIA-AFRICA
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ulous" profits from their operations in Arab countries.
Arab League Oil Congress: The Second Arab League Oil
Congress, held in Beirut from 17 to 22 October, provided
further signs that Western-owned oil companies operating in
the Middle East will be subject to increasing pressures from
local governments.. Congress resolutions supported the de-
mands of Arab .governments for amending the concession
agreements as well as their refusal to recognize oil-price re-
ductions instituted by the oil companies without Arab approval.
A Soviet observer at the Congress told the Arabs they have "no
cause to fear" competition from Soviet oil exports to Western
markets; he accused the major Western-owned petroleum com?
parries of maintaining a "monopoly market" and extractin "fabm
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The. Second Arab ague on~ress
The proceedings of the Second Arab League Oil Congress,
held from 17 to 22 October in Beirut, provided further signs
that the Western oil companies operating in the Middle East
will be subject to gradually increasing pressure from the local
governments. The Congress, however,- achieved nothing as
significant as the creation in Baghdad a month earlier of the
Organization of Petroleum Exporting Countries, whose charter
members are Saudi Arabia, Kuwait, Iraq, Iran, and Venezuela.
-This year's Congress, like. the one held in April 1959,
operated in many respects like..a debating society. It was
attended by officials of the leading oil companies, by govern-
ment representatives of all oil-producing Arab states, and by
a number of government observers from oil-producing states
outside the area.
The Arab government representatives devoted most of
their efforts to detailed presentation. of. proposals aimed at: get-
ting more money for their oil. The Congress' resolutions
supported two of the less drastic of these proposalso efforts
by Arab governments to amend their concession agreements
and refusal of the government to recognize oil-price reduc-
tions instituted by the oil companies without Arab approval.
Oil company pricing policies have been. under strong Arab
attack since the August cut in posted prices for Middle East
oil. Company spokesmen have defended their action on the
ground. that the oil market had become more competitive and
that increased Soviet exports were a key factory they re-em-
phasized this point at the Congress> The leader of the Soviet
observer delegation to the Congress attempted to rebut. this
point of view. He told the Arabs they have "no cause to fear"
competition from Soviet oil exports to Western markets; at
the same time, he accused the major Western-owned petroleum
companies of maintaining a "monopoly market" and extracting
"fabulous" rofits from their operations in Arab countries>
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Burma to Frovide Large Quantity of Rice
To Communist. China
Burma has agreed to provide Communist China from
300,000 to 400,000 long tons of rice duxing 1961, according
to a joint communique issued in Rangoon on 24 October. Chi-
na will pay for this in unspecified "commodities that Burma
requires and China may be able to supply, so as to balance
trade between the two countries:'
This arrangement, which will take between 15 and 20 per-
cent of Burma's exportable rice surplus, is the first major
follow-up to the signing of the Sino-Burmese border treaty on
1 ?ctober 1960 and is the most significant development in Sino?
Burmese trade since termination of the 1954 barter agreement
in April 195?. Since February 1958, trade between the two coun-
tries has ;been:. held to a minimum, conducted on a cash basis with
commodities paid .for in sterling.
There has been a steady demand for Chinese products, es-
pecially consumer goods, in Burma, and the government has
been seeking means to increase its sales to Communist China.
Under the 1954-57 barter trade agreement Burma consist-
ently imparted more from Communist China than it was able to
export, and the deficit continues although the government has
maintained strict regulation over import licenses since that time.
Feiping's difficulties in meeting its xice export commitments
suggest that at least some of the high-quality rice purchased from
Burma in 1961 will be re-exported under Chinese- trade a ree-
ments with Cuba, Ceylon, or bloc countries. 25X1
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