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19 January 1959

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I. THE COMMUNIST BLOC Bulgarian party leaders quarrel I \

over proposal to follow Peiping ,

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funds for Royal Guard and tribal ;

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Turkish opposition party plans to f /

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Afghanistan receives wheat from 2*/I T ~‘ I E

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rove or eease:

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CENTRAL INTELLIGENCE BULLETIN 19 January 1959

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DAILY BRIEF ., , W»,

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2 1. THE COMMUNIST BLOC %/

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~ / ,*Bulgaria: @_here appear to have been strong differences

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4 within the Bulgarian party central committee at its December meeting over plans for the reorganization of the economy,

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continue the gradual merger of collective farms while the g

particularly with regard to the form of agricultural collec-

L ti . P rt F‘ st S ret r Zhivkov re ortedly wanted to

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party's former Stalinist boss, Chervenkov, possibly in an //

/52% effort to unseat Zhivkov, vigorously proposed the creation

' ' ' of 16 17 J/ M of Chinese—type communes, Decisions a - anuary

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~ central committee plenum suggest that the Zhivkov policies ' have won out at least for now] \

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IL ASIA-AFRICA '.::Z:¢£//

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Qasim have urged President Nasir not to appease Qasim. 0/ /

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I.rag—UAR:- llraqi nationalists, including some cabinet we

b ho are plottin a cou a ainst Prime Minister

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, Nasir is said to have replied that he would not meet with Qasim to resolve their differences, and a subsequent

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% meeting reportedly was suggested. to a pro-Communist Iraqi ‘X

official by the Soviet and Chinese Communist ambassadors in Cairsg

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‘(Page 2)

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% Saudi Arabia: Saudi Arabia's "first real budget," which

has been the focal point of Crown Prince Faysal's attempt to introduce drastically needed reforms in Saudi Government operations, was announced by royal decree on 14 January af-

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~ ter many delays... Although details are incomplete, the budget 9”” off s ro ise of brin "n the countr ‘s chaotic finances un- /M/

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der a semblance of control. While allotments to the royal

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There are indications that the Kings co 1 ence // ability to resist Faysal's inroads on his authority is increas-

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Z, in ‘Z2§‘;€2S3Zi§{I1.i1eEE‘Zii§3§Zffiiiciiity national convention to attack the Menderes regime for its%/%

- United States, and withdrawal from the Baghdad Pact. It

1 h f int n n of ties ith NATO as the / w'll, owever, avor ma‘. e a ce ' W‘ keystone of Turkey's defense policy. Since the RPP‘s pop-

* ular support has been growing, American prestige will un- doubtedly suffer from such attacks]

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(Page 5)

/ Afghanistan: The impact on Afghanistan of a recent emergency grant of 50,000 tons of US wheat has probably been considerably lessened by Moscow's provision of 40,400 tons. Afghan news agencies have publicized the receipt of grain from both countries. The Soviet wheat may also be supplied as a gift. 6)

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_ Cuba: Despite condemnation throughout the hemisphere of the summary executions in Cuba, Fidel Castro continues

- 19 Jan 59 DAILY BRIEF

family and military forces have been considerably reduced, ‘I

King Saud has won his fight to retain se arate allotments for ' the Royal Guard and the tribal militia.

111. THE WEST

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"submissiveness" to the United States. The RPP intends to -E" demand Turkish control over most of the bases granted the '1 1;

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to try to justify the actions as necessary to "purify Cuba." Castro has replied. in strong terms to US criticism, but seems to ignore that coming from other countries. His official newspaper on 17 January, in a long and strongly anti- US editoria1,ca1led for a mass rally on 21 January in support of his policy of "social prophylaxis" by the "exemplary pun- ishment of those reponsible for the tyranny, so beloved by the paid yellow press." Uruguay, meanwhile, has sent a "friendly note" to Cuba's UN delegation calling for cessa- tion of the executions.

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I. THE COMMUNIST BLOC

Controversy Developing”0ver Bulgarian Kgricultural Policy

@ring a special plenum of the central committee of the Bulgarian Communist Party, held from 20 to 22 December, a split apparently developed. between party First Secretary Todor Zhivkov and ex-party boss Vulko Chervenkov on the question of agricultural policy. Zhivkov reportedly favored continuation of a policy of relatively moderate change in the Bulgarian economy, based primarily on the merging of collective farms. Cherven- kov, possibly hoping to oust Zhivkov and re-establish himself—- in fact if not in name--as leader of the party, proposed a more drastic reorganization of Bulgaria's administration and economy, centered on the‘ creation of Chinese -type communes]

. @118 policy of amalgamating collective farms was first set forth at a plenum in early October by Zhivkov and was made part of a more inclusive economic development plan advanced at a subsequent plenum on 11 November. The need for further changes in administration and organization to implement November's de- cisions was probably the primary reason for calling the special plenum in December. However, the decisions of another cen- tral committee plenum held 16’-17 -Ja-nuar_y;suggiest the policies advocated by Zhivkov have won out at least for the time being?

FQIGYVBIIROV probably has the unexpressed loyalty of the leaders on the lower party levels, moist of whom have a hard.- line attitude which would cause them to see more of a kindred spirit in Peiping than in Moscow. Zhivkov on the other hand has the indisputable support of Soviet party boss Khrushchev, a fact which so far has probably prevented manv Chervenko supporters from openly opposing hing

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—SE6RE-‘F

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iv" ‘vi

I I. AS1A— AFRICA

Iraqi Plotters Urge Nasir NpotToAppé"{ise Qasim'

[[r_a,g_;;3 ambassador in Cairo, speaking on behalf of an Iraqi nationalist group which is planning to overthrow Prime Minister Qasim's government, warned UAR President Nasir on 12 January not to appease Qasim,j

\The nationalists say Qasim and his Com- munist supporters would like to conciliate Nasir because UAR press and radio attacks have greatly disturbed them, and that any appeasement would only allow time for the Communists to consolidate their position in Iraq. The plotters claim the suc- cess of their coup depends on a continuous UAR propaganda campaign against the Qasim regime_I]

\ __ _ \Iraqi cabinet members in- volved in the plot will not resign since they believe that by re- maining in office they can aid the plot and learn whether it becomes compromised.- This is the first indication that any of Qasim°s ministers are actually plotting against him, although some have been reported dissatisfied and critical of the, prime minister... Foreign Minister Jumard, Minister of Guidance Slianshal, and Minister of Public Works Baba Ali reportedly have criticized Qasimls attitude toward Iraqi C0mmunist_s]

qiasiri is said. to have told the Iraqi ambassador that he woul not meet with Qasim and. that he would instruct the Cairo press to continue its attacks on Iraqi Communists. On 17 Jan- uary, Cairo radio quoted an Egyptian press attack on the Iraqi Communist party, suggesting that Nasir's order has been im- plemented. The attack, however, avoided any direct criticism of Qasim]

Cihe Soviet and Chinese Communist ambassadors to the UAR allegedly suggested to Iraqi Minister of Economy Kubba, a pro- Communist who was in Cairo in December, that the only solution]

-S-EGR-ET-

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E0 the current Iraqi-=UAR estrangement was for Qesim to meet with Nasir personally. The Iraqi ambassador urged Nasir to avoid such a meeting on grounds that nationalist strength in the Iraqi Army would be undermined. An earlier report indicated Iraqi division commanders had nearly completed plans to over-= thr t they had received Nasir°s approve? F“”m“"”““F

_SE‘€RE—T—

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if 151 EEEHEJQ Saudi Arabian Budget Published

A Saudi Arabian national budget was announced by royal decree on 14 January--nearly six months after the expiration of the previous fiscal year. This budget, described by Pre- mier Crown Prince Faysal as "the first real budget in the history of Saudi Arabia," had been the focal point of Faysa1's attempt to introduce drastically needed reforms in Saudi Gov- ernment operations. Although Faysal’s austerity program has made progress in bringing the country's chaotic finances un- der a semblance of control, and although Faysal publicly ap- plauded King Saud°s authorization of a substantial curtailment in the huge allocation for support of the royal family, the few details available suggest that traditional forces headed by the King have.resisted major concessions.

According to the Saudi amiouncement, the budget is to be balanced at 1.41 billion Saudi riyals (about $350,000,000). Vir- tually all income is to be derived from oil operations. The principal reductions have been made in defense spending, cut by about half to around $47,000,000, and in the allocation to the royalfamily, cu.t from an estimated $75-100,000,000 to about $59,000,000.

The inclusion of separate budgetary provision for both the Royal Guard (about $2,750,000) and the tribal militia {about $13,750,000) appears to be an important victory for King Saud. These forces have been controlled and personally cultivated by him. Last summer, Faysal reportedly attempted to induce the King to dissolve the tribal militia and merge it with the army, or absorb the expense out of his own funds.

Faysa1's efforts to implement his reform program have strengthened the position of the King in recent months, since most of the royal family rallied to his side in order to resist further inroads on their income. I

—'F9-P—S-E-GR-E-T3

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Turkish Opposition Party May Launch Anti-American Campaign_ @e opposition Republican People's party (RPP) in Turkey

may soon launch an attack against the government of Prime Minister Menderes for its alleged submissiveness to the United States. This could adversely affect American prestige in Tur- key, which has already declined somewhat]

@PP President Ismet Inonu, former president of Turkey, in a carefully written policy statement during his party's re- cent national convention, deliberately omitted his traditional friendly reference to the United States. This purposeful omis- sion is said to foreshadow intensified attacks on the foreign policy of the Menderes government, Inonu feels the Uni__ted States is responsible for maintaining Menderes in office]

[ihe RPP is reliably reported. to favor restricting US base rights in Turkey and, in general, driving a harder bargain with Washington for Turkish cooperation. Since the Iraqi coup, the opposition has been very critical of the Baghdad Pact and now may urge Turkey's withdrawal._ However, the RPP continues to favor the retention of Turkey's ties with NATO as a keystone of defense policy;

fiyith nearly one third of the seats in the Grand National Assembly, the RPP has widespread popular support, especially in urban areas, and the planned attack against the government would probably receive wide approval. Although national elec- tions are not due until 1961, the opposition party is already mak- ing scathing and effective attacks on other aspects of Menderes‘ policies, Inonu is taking special advantage of the government's loss of popular support which has resultedfrom Turkey"s eco- nomic difficultie

-SEGREF

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__ ._ ._ ____ ._... Approved for Release: 2020/02/21 C03023341

Afghanistan to Beceive Soviet Assistance to Meet Wheat Shortage

The impact on Afghanistan of a recent emergency grant of 50,000 tons of US wheat has probably been offset by Moscow, which has agreed to supply 40,400 tons of Soviet wheat to meet an Afghan ood shortage. \

The Afghan Government request for American help had in- dicated 50,000 tons of wheat would meet the country's antici- pated emergency shortage. In view of the proximity of the USSR, Soviet deliveries now may take care of the most critical shortages which the US shipments were expected to relieve. Kabul, however, may hope to utilize both the US and Soviet de- liveries in improving its food position.

In early December, during the prolonged negotiations be- tween Afghanistan and the United States for wheat assistance and at a time when Afghan relations with the West appeared to be strained, the director of economic affairs in the Afghan Foreign Ministry informed the American Embassy that his government had. requested Soviet assistance in meeting the wheat shortage.

It seems likely the Soviet wheat will be provided as a gift rather than on a loan basis. This is suggested by the tenor of Kabul's thanks to the USSR and its protestations to the United States that it could not abandon its policy of refusing further loans in order to secure American wheat. [T_‘he USSR is reported to have already made an exception to its general policy of re- stricting its assistance to loans by agreeing to pay the entire cost of a number of joint economic projects and military train- ing agreed on during Afghan Foreign Minister Naim's recent visit to Moscow} \ \

—1=eP—sseRs-T3

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THE PRESIDENT The Vice President

Executive Offices of the White House

The

The

The

The

Special Assistant for National Security Affairs Scientific Adviser to the President Director of the Budget Office of Defense and Civilian Mobilization Special Assistant for Security Operations Coordination Board of Consultants on Foreign Intelligence Activities Special Assistant for Foreign Economic Policy Special Adviser to the President Treasury Department The Secretary of the Treasury 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 Secretary for Administration The Counselor Director, International Cooperation Administration The Director of Intelligence and Research 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 Director for Intelligence, The Joint Staff Assistant Chief of Staff for 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 Department of the Interior The Secretary of the Interior

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 Di rec tor

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