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before Japanese elections.

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CENTRAL lNTELL.lGENCE BULLETIN

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10 April 1,958

DAILY BRIEF
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F5 I. THE COMMUNIST BLOC »

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USSR--L-Summit tactics: Although the USSR appears to Y

recog hi ze tha,t t he propaganda value of further letter ex-

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changes is diminishing, it is still wary of moving into the

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preparatory talks phase without a firm commitment from

the West for a summit meeti.ng. First Deputy Foreign
\
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Minister Kuznetsov told Ambassador Thompson that fail-

ure to reach agreement in preparatory talks might result
in cancellation of a summit meeting and that there would
be "no difficul ty' ab ou t exp lo raory
'
t talk s if a date fo ra
summit meeting were first agreed upon. Khrushchev told
UN Secretary General Hammarskjold, during ten hours of
talks in Moscow, that with respect to discussing German
reunification or Eastern Euro e he is not willing to "pay
/ any price" for summit talkatp
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USSR-Egypt: To underscore the importance which

€»/ Moscow attaches to its relati.ons with the UAR and to
,7///

, ‘
Nasir's forthcoming trip to Moscow, the Soviet ministers
of agriculture and culture and the chief of the "Main Di-
Fm
///7

rectorate of Labor Reserves are in Cairo to arrange for

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car ryin mic and cultural exchange agree-
use 1»

Taiwan Strait: Report of the IAC Current Intelligence 3;» ».-.\\\>

§\‘\ '\ Group for tHeL')I‘aiwan Strait Problem for the period L3 March-
9 April 1953.
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II. ASIA~AFRICA Y! \

Indonesia: The central government continues to retain $ \

the tacfical and psychological initiative in its military cam-
\ \
\ §

paign. Dissident leaders in Sumatra. are themselves pessi-

xx \i'

mistic, and the American army attache in Djakarta states

they are beset by many problems, particularly an apparent
lack. of fighting spirit among their forces. Menado radio
in the Celebes, meanwhile, has announced the appointment of \

Col. Kawilarang, former military attache in Washington, as 5

>t

commander in chief of dissident forces and of two air officers § T4

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to head a revolutionary air force. (Page 3)
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(Map)
\ \

J apan-USSR: In an effort to break the impasse in Japanese-

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Soviet fishery negotiations which has lasted since 20 January, \ \.~

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Japanese Minister of Agriculture and Forestry Akagi is planning *.\
QKw‘

to send his delegation home from Moscow and attempt last—minute

bargaining by himself, possibly with First Deputy Premier Mikoyan. s
T0kyo‘s bargaining position is weak, but the government's re=- i§‘l.~
1*
‘

fusal to accept the Soviet proposals has received strong support

~§j:.

from the Japanese populacesl \.(Page 4) ._\,§~

Iraq-Jordan: Jordanian and Iraqi leaders appear to be

\\-
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letting slip eventhe small psychological advantages they ob»

tained from the announcement of their Arab union. They are - \
\
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dealing in a strictly constitutional manner with the problem
of creating central government organs, while Nasir continues \

to make relatively dramatic, well-publicized moves in connec- m §

tion with the UAR. \
(Page 5) \

Algeria; The Algerian rebels have recently stepped up Q

their uifian terrorist attacks, especially in central and east=

ern Algeria. The selection of local,Moslem officials who have §\ \\\\'r.

been cooperating with the French as the principal targets sug- <\>
‘ct
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gests the rebels are making a determined effort to prevent im-

>3 F plementation of the basic statute for Algeria, which offers some
_\\~.

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measure of autonomy but falls far short of the rebels‘ demands.

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10 Apr 58 DAILY BRIEF ii Q §

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III. THE WEST R‘*§3.§§§§

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*Cuba: The Cuban rebels‘ initial attempt to launch an

////

"all-Y>T1TWar" against Batista andto call a general strike

in Havana on 9 April ended in failure. After a plane flew
\§"‘"" over -Havana dropping handbills exhorting the populace to \\\\\
"strike today," bombings, shooting and sabotage threw \\\
the city into confusion for more than an hour; however, \\\\\
workers who had left their jobs when violence broke out \
returned after their noon break, and the armed forces
\\

moved quickly to keep the situation under control. It is

\\\\\\

\\
too early to judge the ultimate effects bf this first abortive \
att emp t . It 1S po ssible that C ast ro may s-uff er a lo ss of
' \\ \\\
e

\\\\
prestige for his failure to carry through his long heralded
%%
/¢ "final effort" against Batista. There is also, however, the
possibility that the 9 April action was premature and that
the major effort is yet to come.
\
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10 Apr 58 DAILY BRIEF 111

TOP ET §§
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 EN"AL
Approved 2019/08/20 603177794
’
fpr Release:
._, LONFI --I

.1. THE COMMUNIST BLOC

Sopviet-Egyptian Relations

The USSR is stepping up implementation of its $175,-

000,000 technical and economic cooperation agreement
wit;h7Egypt on the eve of Nasir*s visit to Moscow. Soviet
Minister of Agriculture Matskevich, accompanied by the
minis terrbI__a"gric'ulture for'Uzb‘e'ki'stan,' has .arrive'd"i_n Cairo
to discuss the agricultural programs called for mider the
agreement. Soviet Minister of Culture Mikhailov, who is
also in Cairo, announced on 8 April that the Soviet Union
will open information offices in Egypt and that Egypt will
set; up similar offices in the USSR. The head of the Soviet
Chief Directorate of Labor Reserves, G. I. Zelenko, is
signing contracts this week in Cairo for the establishment
of 15 vocational and technical training centers and for the
delivery to them of Soviet equipment.

Egypt, for its part, is sending a delegation from the

Ministry of Industry to Moscow this week to discuss im-
portation of Soviet equipment and to negotiate contracts
for the dispatch of Soviet experts to-Egypt. The delega-
tion will also discuss petroleum and mineral projects
under the Soviet aid program. The General Executive
Committee for the Egyptian Five-Year Plan has decided
to es1§1lish a liaison bureau in Moscow.
./X

1’

CONF IAL

10 Apr 58 CENTRAL INTELLIGENCE BULLETIN Page 1

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7

71213

Approved for Release: 2019/08/20 C03177794

 V
Approved for Release: 2019/08/20 C03177794
is

Report No. 115 of the IAC Current Intelligence Group for

TEE?-Taiwan §tr'a'1t Problem the*0Period From IT
E753
L

April
L

Wfifroh
L L

to
'

1. There were no significant combat 0 erations in the

area during the period. W)

3
3.
beginning in April
fertilizer destined for "Fukien Province would be shipped
directly from Japan _.'t0 Amoy. If this trade begins as indi-
cated, the Chinese ,Nationa1ists probably will try to prevent
Japanese ships from entering‘ Amov or Foochow.L

%
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10 Apr 58 CENTRAL INTELLBGENCE BULLETIN Page 2

Approved for Release: 2019/08/20 C03177794

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Approved for Release: 2019/08/20 C03177794
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Approved for Release: 2019/08/20 C03177794

 Approved for Release: 2019/08/20 C03177794

II. ASIA-AFRICA

Situation in Indonesia .

The Indonesian Government retains the tactical and

psychological initiative in Sumatra. Dissident leaders ap-
pear pessimistic and attribute their consistent retreats to
poor communications, an apparent lack of fighting spirit
among their forces, and "miscalculation of loyalties." They
also blame the ineffectiveness of economic warfare, the fail-
ure of South Sumatra and Atjeh in North Sumatra to join
the Padang movement, and the good organization of the
Djakarta offensive.

A broadcast from Menado, capital of the North Celebes

dissident area, has amioimced the appointment of Col.
Kawilarang, former military attache in the United States,
as commander in chief of dissident forces. It also an-
nounced the appointment of two former Indonesian air force
officers as leaders of a revolutionary air force. Dissident
representatives are known to have been trying to arrange
the purchase of aircraft.

The central government has consistently followed a

cautious policy in Sumatra toward areas which are sym-
pathetic to the dissidents but are not actively in revolt.
In South Sumatra, which has claimed to be neutral, thecom-
mander appears to be swinging increasingly toward Djakarta
and away from Padang.

The Indonesian army chief of staff stated recently that

he had avoided using the Tapanuli area of "North Sumatra as
a base for attacking Padang, even though strategically it is
the most logical area. The Tapanuli commander has pro-
tested the presence of progovernment troops in his area, al-
though he has freely permitted entry of Padang troops.

‘The civilian economy in Tapanuli is

Q8C.[111_1I‘lg, the "leaders are threatened," and many people
are_,f1eeing to eastern Sumatran areas where Djakarta forces
are in control.

/
M_f3§CRE'T
10 Apr 58 CENTR INTELLIGENCE BULLETIN Page 3

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 Approved for Release: 2019/08/20 C03177794
,_, (.02\{FI L _,

Japan Attempting High-level

W
Solution of Deadlocked Fishery
USSR
*
Talks'W'ith
J

Japanese Ministe.r of Agriculture and F0restry.Akagi

is planning tosend his delegation home and attempt person-
last-minute bargaining on a higher level in order to reach
all.-i.

agreement in"'the deadlocked. negotiations with the USSR over

Japanese fishing rights in northwest Pacific waters for the
1958 season.

The annual which this year began on 20 January,

talks,
have failed to reach agreement on any major issue. The
Japanese have rejected Soviet proposals which would severe-
ly limit salmon catches in the over-all restricted area and
prohibit ‘Japanese fishing in the Sea of Okhotsk, except for
curtailed crabbing operations, as well as in broad expanses
of Soviet-claimed offshore waters.

The USSR:has rejected Japan's request for guarantees

of safety for its fishermen operating in the vicinity of the
Kuril Islands, and has made agreement on this issue con-
tingent on resumption of peace treaty discussions. The
Japanese have since avoided this issue in order not to
jeopardize other fisheries questions.

Tokyo's bargaining position is weak but its opposition

to Soviet pressure is receiving surprising Japanese popular
support. This support, however, may tend to diminish as
the salmon fishing season, which opens in.May, approaches.
Prime Minister Kishi regards this problem as one of three
major foreign policy issues requiring settlement prior to
elections expected in May. The other issues are the dead-
lock with South Korea and the dispute with Nationalist China
as a result of the private trade agreement with Peiping.

10 Apr 58 CENTRAL INTELLIGENCE BULLETIN Page 4

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 Approved for Release: 2019/08/20 C03177794
"H

Iraq-Jorda_§_i_ Union Problems

Internal politics in Jordan and Iraq may prevent forma"-t

tion for the nascent Arab union of a strong central cabinet,
which Jordanian Foreign Minister Rifai. considers essential
for the ultimate success of the new state. Other recent com-
ments by Rifai also suggest that the Lmion may not be a going
concern for "several months" beyond the mid-May target set
when the union was provisionally established in mid-February.
While Jordan and Iraq at that time moved swiftly to offset the
fanfare given Nasir’s UAR, their strictly constitutional pace
since then has contrasted increasingly with Nasir’s bold and
dramatic moves to speed integration with Syria.

The union will evolve in a series of steps which include

new parliamentary elections in Iraq on 5 May, approval of the
new constitution on 10 May, formation of the union“s parlia-
ment with appointees from the Jordanian and Iraqi legisla-
tures, selection of the cabinet, and installation of King Faysal
as head of state. On the basis of this schedule, the new state
could not be constituted even on a formal legal basis before
the first week in June. The union government even then
would not be in a position to assume responsibilities now dis-
charged by the individual states, particularly in defense and
finance.

Jordanis chronic economic and security problems have

again been highlighted by the Saudi decision for economy
reasons to discontinue the $14,000,000 annual subsidy and
to reduce its 3,500-4:,000"'troops in Jordan. Although Iraq
has agreed to pay 80 percent of the union“s defense costs,
Jordan will need Western aid to meet its share of the burden.
A serious winter drought during J ordan’s usual rainy season
has already reduced the grain crop by one third and damaged
grazing lands even more severely. Should April rains not
materialize, the loss may run much higher. Although Iraq
has surplus wheat, Rifai believes that it might be unwilling
to deliver it as a gift, especially before the union becomes
effective. \ \

Z
CON NTIAL

10 Apr as CENTRAL INTELLIGENCE BULLETIN Page 5

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 w
/
Approved1:or_|R:elease:_%01'9_@§L20_§_)03177794

vi

DISTRIBUTION
TI-IE 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
Special Assistant for Security Operations Coordination
Operations Coordinating Board
Board of Consultants on Foreign Intelligence Activities
Special Assistant for Foreign Economic Policy
Treasury Department
'I'he
The Secretary of the Treasury
The Department of State
The Secretary of State
The Under Secretary of State
The Deputy Under Secretary for Political Affairs
The Deputy Under Secretary for Administration
The Deputy Under Secretary for Economic Affairs
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
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

Approved for Release: 2019/08/20 C03177794

 /<\pr>rovedré>r

mi 0

I II. THE WEST

*Cuba: The Cuban rebels’ initial attempt to launch an Y
\
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"all-out war" against Batista and to call a general strike \

in Havana on 9 April ended in failure. After a plane flew

over Havana dropping handbills exhorting the populace to \

"strike today," bombings, shooting and sabotage threw

the city into confusion for more than an hour; however,
workers who had left their jobs when violence broke out \

returned after their noon break, and the armed forces

moved quickly to keep the situation under control. It is
too early to judge the ultimate effects pf this first abortive \

attempt. It is possible that Castro may suffer a loss of

prestige for his failure to carry through his long heralded
"final effort" against Batista. There is also, however, the
A
possibility that the 9 P ril action was re ature and that \

the major effort is yet to come.

A1ge1-ia; The Algerian rebels have recently stepped up ‘\;;l

their ufian terrorist attacks, especially in central and east- S

g; 3-:1

ern Algeria. The selection of local Moslem officials who have as as

been cooperating with the French as the principal targets 51_1€-

gests the rebels are making a determined efforthtohprefvegt élgln-;e \'~‘ —

plementation of the basic statute for Algerlai W ‘3 ° e \

measure of autonomy but falls far short of the rebels’ demands.

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Approved for Release: 2019/08/20 C03177794