i THE COMMUNIST BLOC
Turkish disorders slacken; studentsplan lira! decnoastration today asxi^i; US i> up port against regime.
Arab shipping boycott Regins with Utile practical effect thus Ur.
foreigo minister says Qasim told Mikoyan Iraq and USSRve onf neutrality.
Tunisian announce exchange ofwith USSR*
nr the wist
early state mem De Gaulle*
Panama tenseay ejection,anniversary of march on Canal Zone irt& unsubstantiated invasion litters.
20 DAILY BRIEF
I. THE COMMUNIST BLOC
CENTRAL INTELLIGENCE BULLETIN
Turkish student demonstrations afterhave slackened In intensity and may have passed The last demonstration Is scheduleday,to one participant. It will be peaceful and willits theme: "The US has helped the South Koreanoverthrow the regime--why then cannot it help thoseThe martial law commander of Ankara has been
Jtrtj unwilling to be tough on the students, and the Turkish chief
Hiau amppiug puycuu: inv rtrau uuyuon oi Americanso far has had little practical effect beyond the diversion of some American-flag vessels to non-Arab ports,Cairoministry official has said that the boycott would be "sym-
of staff took charge to disperse the demonstrations ofpril. Army action has been firm but generally careful, andhave not shown the same hostility to the army as they did to the police on the first day of the rioting. (Jhe opposition Republic Peoples' party reportedly is planning to goSome of its members are on their way to Istanbul to engage in propaganda activities among the foreign correspond-ents gathered there for the NATO Ministerial Cnnnr.il mpptinp-.t
atin America: UAR Deputy Foreign Minister Sabrl,
ms two-montn gooa-will trip, whitift enea in Montevideo
est ln the concepteutralist bloc ofatinstates
week, appears to have had some success in stimulating inter-
Iraqi Prime Minister Qasim was "quite blunt" in telling Mikoyan, during his recent visit to Iraq, that neutralism does not have the same meaning to Iraq that it appears to have to the Soviet Union, according to Iraqi Foreign Minister Jawad. Qasim and Jawad assertedly told Mikoyan that they did not consider Iraqfe policy of neutrality should require it to follow the Soviet line at all times. While Jawad apparently believes this camehock to Mikoyan, the Soviet leader's visit to Baghdad presumably took place becauseesire to examine at firsthand the obvious differences which have developed In the policies andof Jhe two governments.
n-ne estaonsHffient of diplomatic relations be-tween Tunisia and the USSR will probably be announced this week, accordingesponsible Tunisian official. President Bourguiba has recently shown increasing interest in technical and economic aid from bloczech embassy was established in Tunis inubsequently the Tunisians agreed to, but have not yet implemented, an exchange of ambassadors with Poland. Finance Secretary Mestirl will apparently be Tunisia* first ambassador tn cow.}.
Guinea: ^resident TOUreS government appears to have decided not to allow Western companies marketing oil in Guinea to import further stocks from normal sources. The companies have reportedly
been told they must buy and distribute petroleum productsfrom the Soviet bloc under barterwhich conserves Guinea^ extremely limited foreignreserves. Anon POL shipment from the bloc was to arrive in Conakry onpril,econd, slightly
larger shipment is due ln3)
III. THE WEST
France-Algeria: (De Gaulle willajor Algerian policy statement some time beforeay which will "go fariberalccording to the Gaullist deputyby the government to prepare for theay cantonal eled tlons in Algeria. He added that the elections may be postponedreliminary understanding with the FLN develops fromallegedly taking place now through intermediaries. Rebel spokesmen have recently indicated that they regard peaceas at the lowest ebb since De Gaullefceptember pro-
ensions overay national elections, the ac tivities of Communist-infiltrated and Cuban-influenced student groups, and growing labor unrest combine to raise the possibility of violent outbreaks during the coming week. Leftist students may try toarch into the Canal Zoneay tothe anniversarytudent-led flag-planting expedition two years ago. Also, the government is apprehensive over unsupported rumors of an imminent revolutionaryelatively minor spark could touch off violence by Panama Cityte restive,lower-Income groupsTf
I. THE COMMUNIST BLOC
Arab Shipping Boycott
Two American freighters, at opposite ends of the Suez Canal, were the first vessels affected by the Arab boycott of American shipping, which began at midnight onpril. Arab repairmen walked off the Bennshipper at Suez,ugboat carrying demonstrators shouting "No canal for Israel"picketed the Sir John Franklin at Port Said. Neither ship, however, was prevented from using the canal. In Beiruteople, most of them students from the American University there, demonstrated in an orderly fashion in support of the boycott, shouting anti-American slogans. Longshoremen in Montrealeafarers' union picket line and beganthetar of Assuan, thereby preventing theof Canadian ships ln the boycott.
The chief practical effect of the boycott so far has been to cause the diversion of several American-flag vessels to non-Arab ports, with the result that for the time being Arab dock-workers and other demonstrators may have little or nothing to boycott. The UAR Government plans to divertound for the UAR on US ships to Greece and Italy for transshipment on non-US vessels, while consignees in Beirut are instructing New York not to send their purchases onvessels. Lebanese Foreign Minister Uwayni, who said union leaders had made it unmistakably clear they werenot to work American vessels, asked the American Embassy to inform the owners of the Santa Alicia, an American ship scheduled to arrive at Beirutay, that the Lebanese Government is prepared to defray all additional costs ofits Beirut cargo, ln order to. avoid an incident.I
during the week beiore the ooycott omcialiy went into effect US vessels were unloaded onlyesult of police pressure on dockworkers.
Arab government officials publicly support the boycott against the "Zionist conspiracy" which they believe caused the picketing of
the Cleopatra in New York, but many of them
have privately expressed concern over therolonged dispute may have on American relations with the Arab states, due to the highly emotional character of the issue.
(lhe undersecretary of the UAR Foreign Ministry said the boycott initially will beossibly involving one ship in each Arab port.]
nit secretary general oi tne international coniede ration oi Aral) Trade Unions (ICATU) has
a boycott of American aircraftr continued, and another ICATU spokesman is quoted as saying that measures would be taken to prevent the loading of American
Guineail Supplies From Soviet Blor
President Toure's government has apparently decided tohenceforth on Soviet bloc sourcesajor part, if not all, of Guinea's petroleum requirements. Until now, four Western oilMobiloil, Shell, and British Petroleum-have imported and marketed petroleum products consumed in Guinea. The0 worth of imports handled by the four companies last year constituted the eighth largest item on Guineas list of imports
Since Guinea broke away from the French franc zone in March, the Western companies have been unable to obtain any convertible foreign exchange for the replenishment of their petroleum stocks from normal sources. Guineas director of mines told theEmbassy in Conakry that the companies have refused toimporting their products on the basis of government assurances that payment arrangements would be worked out later. The Texaco representative maintains, however, that the government rejectedby Uie four companies to continue importing on this basis and that Texaco was denied permission toanker now en route to Guinea, even without such assurances.
ilso revealed that he and the otherof the Western companies were told by Guineas director of mineseeting onpril that they now must buy and distribute bloc petroleum products. At the meeting, the Directorate of Mines' Polish "technical counselor"rominent role. Thewere Informed that anon POL shipment from the bloc was scheduled to arrive in Conakryoviet tanker onpril. This shipmentecond, slightly larger one being carriedoviet-chartered Norwegian vessel due in mid-May will supply Guineas POL needs for three months at present consumption rates. The imports from the bloc are reportedly to be paid for out of next years banana production, the current crop being already over-committed.
While the Western companies have apparently agreed to handle the bloc products for the time being in the hope their prospects may improve, they are unlikely to stay on for long simply as distributors. For its part, the Guinean Government will probably not be willing to use its scarce foreign exchange to buy the companies' products as long as it can fill its POL needs from the bloc through barterr
2 May 60 CENTRAL INTELLIGENCE BULLETIN
CONFFJCNTIAL, III. THE WEST
New Possibility of rrencn-Algerian Agreement imported
general de Gaulle willajor policy statement on Algeria sometime prior toay, according to Lucienaullist (UNR) deputy in the French National Assembly who is the UNRs Algerian expert and party whip and who has beenby the government to prepare for theay cantonal elections in Algeria. Neuwirth told the American Embassy that he expects the speech to be very liberal in tone, capable of modifying theof the Moslem population to French policy, and ofthose whoardening of De Gaullepolicy after his March speeches to the army in Algeria. He also said the speech might even include an announcement of some agreement with the Algerian rebel (FLN) government^
[Contacts with the FLN are currently taking place througharranged through "other channels" than the abortive contacts in February, according to the source. Neuwirthsconcerning the Interest of both sides in negotiating aalong the lines previously stipulated by De Gaulle mayarge measure of personal reaction, but, because of his close ties with Premier Debre, it might be an indication of the current attitude of the French Government]
Qjeuwirths mention of the possibility of postponing the May elections in Algeria if some "preliminary understanding" is reached with the FLN may be tied in with previous reports that Paris was having second thoughts about these elections?/
Qlecent statements by rebel spokesmen indicate that theypeace prospects as at the lowest ebb since Deroposals. The dispatch of an FLN ministerial delegation to Peiping, with the apparent mission of negotiating for Communist aid, appears designed also to demonstrate the rebels' willingness to continue the war. Although the rebels would be prone to attribute any new French overtures to concern over the cantonal elections, they accept the necessity of negotiations with the French and would probably receive any French emissary_.1
THE PRESIDENT The Vice President
Executive Offices of the White House
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The Treasury Department
The Secretary of the Treasury
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Director, International Cooperation Administration The Director of Intelligence and Research The Department of Defense The Secretary of Defense The Deputy Secretary of Defense
Assistant Secretary of Defense for International Security Affairs
The Secretary of the Army
The Secretary of the Navy
The Secretary of the Air Force
The Chairman, The Joint Chiefs of Staff
The Director, The Joint Staff
Chief of Staff, United Stales Army
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