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THE COMMUNIST BLOC
I
I.

USSR may be intervening in East

We
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German dispute between Ulbricht
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and purged opponents.
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'6 /r)’ '/Q‘ .~-~.~_ _T w ;,-\ , C 4
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II. ASIA-AFRICA
Impact of Saudi regime shift
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makes eventual resumption of
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sole rule by Saud highly unlikely.

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Communists resume black radio '\ "/'

broadcasts to Greece as election
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Spain, Morocco about to resume 1 \ . W ~_ ,< 1

negotiations on cession of South-
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 5 vs uuul {La 1
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CENTRAL INTELLIGENCE BULLETIN

27 March 1958

_
DAILY BRIEF

jg/,g»,z;,§ 1. THE COMMUNIST BLOC

East Germanyzz Despite Ulbricht's efforts in Moscow,
‘the USSR has intervened
in the East German. party dispute to halt the denigration
\

of his opposition. Moscow's action follows presentation

g,/g, of the anti-Ulbricht faction's views to the Soviet leaders by
former East German security chief Ernst Wollweber.
Various memb 9 rs of the 0PP ositio 11 ar 6 a8 ain circulatin 8
freely in East Germany, including Schirdewan, the leader
of the opposition, who remains determined to oust Ulbricht.
\
‘(Page 1)

I I. ASIA-AFRICA
Saudi Arabia: The widespread rumors that Crown
Prince Faysal Has assumed control of the Saudi armed
forces are unconfirmed. Saud's actual power position at
he this time may be greater than such reports suggest. Never-
theless, the impact in the area of Faysal's announced as-
sumption of broad powers has been to undermine rather than
E»
buttress the King's authority. A return to personal rule
Saud alone now is unlikelv. bfi

3
Indonesia: Further evidence that an amphibious attack
\

on the Pafing area of Sumatra by central government forces

is not imminent is
navy's principal task in West Sumatran waters
\ \

is to enforce the blockade of dissident-held territory.)

Approved for Release: 2019/08/20 C03177785

 ' ‘
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The two smaller of the four naval ships built in Italy
for the Indonesian Government are scheduled to depart \ \
Leghorn 29 March for Djakarta. Their estimated time of
arrival is late April or early May. The central govern-
8,;@ ment has announced that its forces in Central Sumatra are \
still moving toward Padang. In Djakarta, the government
is drafting legislation calling for approval of a $20,000,000
Chinese Communist loan to finance a textile factor and

We
the im ort of badly needed fabrics and rice.
2> <Map> t

Japan: Japan will begin experimental firing of guided

missiles in the fall of 1959, according to Defense Director
Tsushima. A missile range is being established on Niijima \\
Q49’ Island, about 100 miles south of Tokyo on the east coast,
and initial experiments apparently will involve defensive
\ m'ssil s f Swiss and American manufacture.
(Page 3) g.
\\»\\\
:x\>§:>>_>‘:r
\-\~

Communist broadcasts to WGreece: A clandestine Com-

\ munist radio, withits transmitter possibly located in Czech-
\
\ oslovaki a, is broadcasti ng to G reece afte r more th an two
L

years of silence. Leaders of the exiled Greek Communist

party may have decided that a renewed radio campaign at
this time could assist the Communist-front United Demo-
cratic Left in the forthcoming Greek national elections.
<Page4>
t

\ \
III. Tl-IE WEST
Q \
Spain-Morocco: The Spanish and Moroccan foreign min-
isters are tomeet shortly to negotiate further regarding
~71/0 termination of Spain’s protectorate over Southern Morocco. ‘

\
(Page 5) \

\\
\\
\ \

27 Mar 58 DAILY BRIEF 11

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 Approved for Release: @010/08/20 C03177785

11.. THE CQMMUNIST BLOC

Moscow Stops East E”German Criticism of

Purged Leaders
After hearing both sides of the East German leader-
ship dispute, the USSR has ordered the Ulbricht forces to
call off their denigfiation of the
Both 'p'ar.ty leader. Ulbricht and __purged
security chiefilrnst Wollweber, a member of the uppOSi-
tion, visited Moscow following the purge in early February.
Karl Schirdewan, leader of the opposition, has since been .

assigned to a minor position in the state archives, but he

and the other purgees are said to be enjoying most of their
former privileges such as government housing and use of
official cars.

Schirdewan is unrepentant and has refused to engage

in self-criticism or to confess errorsJ
H
Moscowconsiders that Schirdewan
still
can be useful. His friends no longer shun him, and many of
them believe the Ru.ssians are keeping him in reserve as a
possible replacement for Ulbricht should such a move be-
come advantageous.
Premier Grotewohl and Deputy Premier Selbmann, who
opposed Ulbricht on many issues, have appeared confident
since their return from Moscow, suggesting that they had re-
ceived assurances from the Kremlin. During recent weeks
there seems to have been a growing tendency among party
and government officials to avoid identification as strong
Ulbricht adherents, reflecting a belief that Ulbricht's own
pos/ition is none too strong. \ \

—ssa=z£a=

27 Mar 58 CENTRAL INTELLIGENCE BULLETIN Page 1

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 Approved for Release: 2019/08/20 C03177785
I 8'1 Kill ‘Id I
ASIA -AFRICA

S
‘

I I.

Situation in Indonesia

Central government troops are headed overland toward

the dissident strongholds of Padang and Bukittinggi,
In addition to‘ forces moving from Pakanbaru
other troops which recently occupied Rengat have continued
on toward the west coast. These forces have the option of
joining east of Padang for a coordinated assault on the city
or of operating as pincers. Djakarta has ordered the con-
tinuous naval blockade of Padang and has sent its principal
naval vessels into West Sumatran waters to enforce the
blockade. The waters off.Padang have been mined and the
city is vulnerable to air attack.

Dissident troops in North Sumatra are reported con-

tinuing their withdrawal into Tapanuli. They are being
pursued by government forces.

In Djakarta, the government is drafting for submission

toparliament a Chinese Communist credit agreement to
finance a textile factory, 70,000,000 yards of textiles, and
20,000 tons of rice. Terms of the loan are ten years at two
and a half percent. Arrangements are being made for de-
livery of rice and textiles even before finalization of the
agreement in view of the current shortages.
The government is exhibiting at Djakarta arms dropped
to the rebelsand captured by government forces on 16 March.
The exhibition is open only to military attaches and invited
guests.

Two patrol escorts built in Italy for the Indonesian

Navy are scheduled to leave Leghorn on 29 1\/larch, which
would put them in Indonesian waters in late April or early
.May. Two other ships on order, both coastal destroyers,
are scheduled for completion in early May.

27 Mar 58
4=eP-ssemsrr 3
CENTRAL INTELLIGENCE BULLETIN Page 2,

Approved for Release: 2019/08/20 C03177785

 Approved for Release: 2019/08/20 C03177785
I._4I_!.I. II.‘ J..I.I.1I.'J.L I .I. J.Cl.I..J

Japan to Begin Missile Tests in 1959

The director of Japan's Defense Agency, Juichi

Tsushima, informed a Diet committee on 26 March that
Japan will begin experimental testing of guided missiles
in the fall of 1959. This plan, although pres.ent1y limited
to defensive weapons, represents a major step in mili-
tary policy for Japan and considerable political risk for
the government because the Japanese people still do not
favor rearmament and strongly oppose nuclear weapons.

Tsushima said that a missile range would be estab-

lished on Niijima Island, about 100 miles south of Tokyo.
Press reports indicate that difficulties may arise in connec-
tion with acquisition of land for the site. Presumably initial
tests would be limited to the surface-to-air Oerlikon pur-
chased from Switzerland and the air-to-air Sidewinder to
be made available by the United States.

The decision to proceed with the missile program was

the result of strong pressure from defense officials and mem-
bers of the ruling Liberal-Democratic party's defense subcom-
mittee who believe Japan's defense establishment is obsolescent

The Socialists will attempt to arouse a public uproar on

this issue, but the government almost certainly will point
out that neither weapon has a nuclear capability. The govern-
ment probably will be unwilling to consider introducing nu-
clear weapons as long as antinuclear sentiment remains high
ilyipalh

27 Mar 58 CENTRAL INTELLIGENCE BULLETIN Page 3

Approved for Release: 2019/08/20 C03177785

 Y
Approved for Release: 2019/08/20 C03177785
.
LJJ1 _
in-1

Clandestine Communist Radio Begins Broadcasts

To Greece
I I

A clandestine short-wave transmitter, identifying itself

as the "Voice of Truth," began. brief daily broadcasts in Greek
on 19» March. Officials in Athens believe the transmitter is
being operated on behalf of the illegal Communist Party of
Greece (KKE), perhaps from Czechoslovakia. The broad-
casts have been antigovernment and anti-Ame rican, empha-
sizing the "plight" of Greek farmers, the role of the "colo-
nialists" in the Cyprus problem, and the need for a coalition
of Greek political parties to participate in the forthcoming na-
tional elections.

These are the first such broadcasts since "Radio Free

Greece" discontinued operations from Bucharest in December
1955 after eight years of supporting Greek Communist ac-
tivities. It was assumed at that time that the cessation of
broadcasts was designed to strengthen claims that the USSR
was not interfering in Greek internal affairs so that Greek
Communists could successfully promote an electoral coali-
tion of center and leftist parties for the elections in February
_

1956.

The KKE. may now have decided that the Communist-

front United Democratic Left (EDA), whether running alone
or as part of an electoral coalition, could profit from a
radi.o-propaganda barrage on its behalf during the election
campaign. The "Voice of Truth" will probably concentrate
its attacks on proposals to establish missile bases in Greece,
the handling of the Cyprus issue, and the economic problems
which still beset Greece. However, the overt re-entry of the
KKE into Greek poli.tics would furnish anti-Communists in
Athens with further ammunition in their current campaign
against collaboration between centrist arties and EDA in
the forthcoming elections,

2'7 lV.[ar 58 CENTRAL INTELLIGENCE BULLETIN Page 4

Approved for Release: 2019/08/20 C03177785

 Approved for Re|e_a§e_5 @010/08/20 C03177785

III. THE WEST

Spanish and Moroccan Foreign Ministers to Meet

Regarding Southern Protectorate

Spanish Foreign Minister Castiella told Ambassador

Lodge on 25 March that he and Moroccan.-Foreign Minister
Balafrej would meet shortly at an undetermined place. Pre-
sumably this meeting will represent a new effort to remove
the latest snag in negotiations for termination of Spain's
protectorate over Southern Morocco.

Spain had antagonized Morocco on 19 March when the

Spanish ambassador in Rabat demanded guarantees against
"new Moroccan aggression. " This statement by the ambas-
sador apparently reflected divided counsels in Madrid as a
result of pressure from Spanish army leaders, who are
known to oppose cession of this area unless Spain obtains
maximum safeguards against further hostilities mounted
from Morocco. Castiella's remark to Lodge that a "deci-
sion" is "imminent" suggests that the Spanish Government
is now about to clarify its own position regarding the turn-
over/of the southern protectorate,
\

_SE€*RE¥l

2'7 Mar 58 CENTRAL INTELLIGENCE BULLETIN Page 5

Approved for Release: 2019/08/20 C03177785

=§§§§§a§assasssssssss§§§§§§§§§§§§§§§§§§§§§§§§§§0W2;b0j§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§
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CENTRAL INTELLIGENCE BULLETIN

27 March 1958

DAILY BRIEF

1. THE
East "Germanyz: Despite U,l richt's efforts in Moscow,
\t h e USSR has intervened
in the East German party dispute to halt the denigration
\
of his opposition. Moscowfg action follows presentation
of the anti-Ulbricht facti A's views to the Soviet leaders by
former East German se rity chief Ernst Wollweber. '

Various members of t opposition are again circulating

G
freely in East ernia , including Schirdewan, the leader
' ' ' '

of the opposition, w
Y

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II. ASIA-AFRICA
Saudi Arabia: The widespread rumors that Crown
Prince Faysal Has assumed control of the Saudi armed
forces are unconfirmed. Saud's actual power position at
this time may be greater than such reports suggest. Never-
theless, the impact in the area of Faysa1's announced as-
sumption of broad powers has been to undermine rather than
buttress the King's authority. A return to personal rule by
S aud alone now 1S unlikely.
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J apan: Japan will begin experimental firing of guided
missiles in the fall. of 1959, according to Defense Director
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Tsushima. A missile range is being established on Niijima
Island, about 100 miles south of Tokyo on the east coast,
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and initial experiments apparently will involve defensive

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Approved for Release: 2019/08/20 C03177785