THE PRESIDENT'S INTELLIGENCE CHECKLIST 11 JULY 1961

---1 r r r-1 r-1 ; Declassified in Part - Sanitized Copy Approved for Release 2015/05/04 : CIA-RDP79T00936A000100190001-5 THE PRESIDENT% INTELLIGENCE CHECKLIST. July 1961 TgrorlEG-kEL Declassified in Part - Sanitized Copy Approved for Release 2015/05/04 : CIA-RDP79T00936A000100190001-5 L F F-7-4 L -1L 1i 1[ 1i Declassified in Part - Sanitized Copy Approved for Release 2015/05/04: CIA-RDP79T00936A000100190001-5 NOTE: This issue includes items from that of 10 July 1. Comment on Khrushchev's The addition of 3.1 billion rubles military budget state- represents an increase of about one- ment third in announced military expenditures, only 10-15 percent of which would be accounted for by the halt in demobili- zation. To spend this amount, however, in the remaining months of 1961 would require drastic--and probably detectable --reorientation of the economy at the expense of Khrushchev's programs for "catching up with the West" and im- proving the standard of living. We suspect, therefore, that at least a part of the announced increase re- presents the uncovering of military expenditures previously concealed in other categories of the budget. The announced halt in demobilization makes public a step probably taken several months earlier. 50X1 2. Dominican riots set back The disturbances last week, inspired chances for Balaguer's by pro-Castro extremists, resulted in reform program violent reprisals by police and govern- ment-controlled mobs. There will now be greater pressure for repression of all anti-Trujillo activities, and moderate middle-class groups will be afraid to give political support to Balaguer. On Saturday, Castro started 50X1 a new radio program, "The Voice of the Dominican Liberation Movement."2 r-- TL-DJ ri,. T-- C----a Declassified in Part - Sanitized Copy Approved for Release 2015/05/04: CIA-RDP79T00936A000100190001-5 L i [Ti I L__ 11 L f---A 11 r 1? 1 I -- [ [ / [] L , . Declassified in Part - Sanitized Copy Approved for Release 2015/05/04: CIA-RDP79T00936A000100190001-5 3. Kuwait developments 4. Laotian developments a) The UAR is attempting to promote a unified demand by the Arab states for immediate British withdrawal. Although it still opposes Iraqi annexation, the VAR feels it is an "Arab problem." b) The Arab League is showing a tendency toward making Kuwaiti membership conditional on British withdrawal. c) d) the British, 50X1 50X1 50X1 , 5ax1 are con- 50X1 siaering replacing their troops with an Arab or Swedish force under UN auspices, and hinting that something might be worked out in the Security Council in "ten days or so." , (State Cables) (SefLiiizeut alGatv/ a) Phoumi's program for using the King to bring about a new government in Laos has fallen behind schedule; his plan will not be ready for presenta- tion to the King before the end of the week. b) We have further indications of 50X1 local friction between pro-uv nna forces and the Communists. c) Analysis of reorganization and expansion of North Vietnamese communi- cations supports earlier indications that Hanoi has a growing role in air- lift operations into Laos 5nx1 50X1 50X1 TL _ -1- -L Declassified in Part - Sanitized Copy Approved for Release 2015/05/04 : CIA-RDP79T00936A000100190001-5 1 rIrlF71 c7rIririr--1 F7D Declassified in Part - Sanitized Copy Approved for Release 2015/05/04: CIA-RDP79T00936A000100190001-5 5. SwedH s seek to postpone Chi ese representation issue 6. Noh-align d Nations Conference Their UN delegation is rounding up support for setting up at this year's General Assembly session a committee which would study the "whole question" and report back the following year. The original twenty members have finally agreed on additional nations to be invited: Nigeria; Togo; Upper Volta; Lebanon; Ecuador; Bolivia; Mexico; and Brazil. This list re- presents a substantial victory for the moderates led by India and Burma. C- TL ri.. T-... Declassified in Part - Sanitized Copy Approved for Release 2015/05/04: CIA-RDP79T00936A000100190001-5 50X1 50X1 =I I= Declassified in Part - Sanitized Copy Approved for Release 2015/05/04: CIA-RDP79T00936A000100190001-5 jI NOTES A. Sunday's air show in Moscow was about as expected; no new aircraft types were shown beyond those spot rd in rehearsals. B. Soviet naval exercises in progress in the Atlan? ic have extended into waters west of Ireland--much farther from home bases than previous large-scale maneuvers. D. IncireiSing diSsatisfaCtion with U Nu's leadership has prompted rumors in Rangoon of an early government cr sis E.? The UN haE forcibly expelled from the Congo George Thyssen s, an unofficial Belgian extremist adviser in Katanga. We expect a reaction which will further complicate efforts to achieve Katangan participation in the parliament meeting. 50X1 50X1 50X1 50X1 50X1 G-- TL T- Declassified in Part - Sanitized Copy Approved for Release 2015/05/04: CIA-RDP79T00936A000100190001-5 Declassified in Part - Sanitized Copy Approved for Release 2015/05/04 : CIA-RDP79T00936A000100190001-5 Declassified in Part - Sanitized Copy Approved for Release 2015/05/04 : CIA-RDP79T00936A000100190001-5 50X1 50X1