Authority TOP SECRET DAILY STAFF SUMMARY A DEPARTMENT OF STATE POLICY REPORT DECLASSIFIED Authori 7 JUNE 22 1960 SIS-80 File This TOP SECRET STAFF SUMMARY is the joint work of the policy information of cers in various area-s of the Department-and the Department s research and intelligence organization It is to be considered as an Eyes Only document that is for the PERSONAL INFORMATION AND USE OF THE DESIG- NATED RECIPIENT ONLY The Summary must at all times be handled in accordance with the Department s instructions governing the use of material classi ed as TOP SECRET The STAFF SUMMARY is edited and produced in Individual copies of the document are to be returned to Room 5252 New State within 24 hours after receipt In accordance with the Department s security regulations persons who read or handle this Summary are required to Sign below Name Date 5 DECLASSIFIED Authority MN TOP SECRET Eyes Only For Designated Recipient DEPARTMENT OF STATE Wednesday STAFF SUMMARY June 33 1960 ONTENTS EUR OPE Page US Help to France on Missiles SuggestedReactions to Algerian Communique Noted a 71 Iceland Queries US on 11 2 and Keflavik Base NEAR EAST Canadians Approach Turks on Diefenbaker Proposals 2 UNITED NA IONS Argentina Opposes Security Council Postponement 3 FAR EAST Vieto-Nam Denies Diversion of US AidJapanese Developments Reportedsch-#- 7 AMERICAN REPUBLICS US Asks Consideration of Cuban ProblemSPECIAL DISARMAMENT SUMMARY Closed 7 30 am TOP SECRET Eyes Only For Designated Recipient EIFD Authorityij I - I - Eyes Only For Designated Recipient -1 USHelpto France on Missiles Suggested Heughton con-curs with our Representative at SHAPE and ear Acting NATO Representative that 110 French Official is in a positien te' say autheritatively what de Gaulle wants from the MRBM program altheugh there is a general censensus that de Gaulle desires US help in creatingan independent nuclear deterrent Heughten believes Spaak'a prep-033 13 would be more likely to meet whatever may be de Gaulle s desire-s if they were broadened to effer Franc'e- the adciitinal possibility if buying missiles ether than the Palaris fer natienal use or ref acquiring US Mews-how en ballistic missiles in general Houghten is increasingly cenvinc ed it wen-id be in the US interest to after France assistance in acquiring nattcmal ballistic missiles whether in the farm of sales er 0f research and development fer the following reasons 1 such an offer might provide a means if strengthening French ties with NATQ by inducing France t0 accept an its territory some andLaSEhniatde NATE ate'mic warhead steekpiles centralled by Z helping France te acquire this element of a national nuclear farce alse- would mean assisting it t0 achieve thepesitien de Gaulle wants for France in wen-1d affairs and 3 such an after weald have a beneficial effect on French relations which if we refuse te medi j ear position will suffer a eeri aus setback Paris 5953 6 20 5 LD Reactiene to Algerian Communique Noted a Foreign Minister Mokaddem has telel Walmsle'y' that Tun- 21 eta wwas satisfied with Algerian rebel respnnee to de Gaulle s offer and attached great importance tie the rebel decieicm Tunisia viewed a final re salution at the Algerian war as leading ta staility in Africa the reveetablishment of French p reetigeg and a nermallzation at French relatiene with Africa and the free world Furthermere Tunisia hoped the US weuld use its credit by being helpful tea the French threugh diplematic channels wherever appreyriate aveidz mg actiezee er wards that wavelet hinder rather than facilitate the negotiatieae Regarding a Tunisian rele Mnkaddem said Tunieia would net offer gored Offices or mediation at any kind at leaet as long as centacte and Regatta - ticme were taking place between the twe parties However he was fave-rm ably impreesed by the idea that Tunisia and Merecce might serve as euetedians of Algerian arms if a ceasea re were successful and no ether fermula were feared for the'tzleetinatien ef arms By this means there weuld be 1m surrender at rebel farcea although the French Army could claim pacification had been achievedTOP SECRET Eyes Only For Designated Recipient TOP SECRET Eyes Only For Designated Recipient i2- _E mbassyr Paris notes that Socialist leader Mollet broke his silence yesterday by declaring his support for do Gaulle's' appeal and the Algerian response Consulate General Algiers reports there are no indications of imminent political action by French Algeria elements and despite a tense atmosphere there seems to be little promise of significant disorders in Algiers in the next few days While there may be some unhappiness in the Army no reason is seen to question the French Government's assumption that the Army is essentially loyal NevertheleSs hitter resentment of de Gaulle and suspicion that his Folicy is aimed at the eventual disengagement of France from Algeria remains deepuseated Embassy London meanwhile reports the Foreign foioe is cautiously optimistic regarding the rebel response The Foreign fties has speculated that the rebel decision stems from disc couragement regarding operations in Algeria and uncertainty concerning the effectiveness of assistance from such sources as the Chinese Communists Tunis 1836 6 21 C Paris 5974 6 21 OUO Algiers 4 10 6 21 C London 6146 6 21 OUO Iceland Queries US on 3 2 and Ke avik Base The Icelandic Foreign Minister has asked Thompsonwhether the had used Ke avik for 13 2 flights to or over nonaNATO countries and whether atomic bombs or weapons were kept at Ke avikor carried through it transit Thompson comments there was no indication that these Questions arose out of anything other than Ireland's concern over the international - situationo As regards the storage or transportation of atomic weapons in or through Ketlavik the Foreign Minister did not request assurances that Iceland s prior agreement mustlse obtained in this connection Thomeeon feels that the storage of atomic warheads in Iceland without the latter's prior agreement would he a mistake and suggests that if we have no intention to do this we so inform the leelandic Government without awaiting its request to this effect Reykjavik 367 6 NEAR EAST Canadians Moroach Turks on Diefenbaker Proposals - The Canadian Embassy at Ankara has informed our EmbasSy it had approached the Turks in following sip Diefenbaker s conversations here concerning 1 an acceleration of studies of future along the lines of the US proposals and Z a NATQ headsaof- government meeting in Ottawa Sarper TOP SECRET Eyes Only For Designated Recipient TOP SECRET Eyes Only For Designated Recipient man now has informed the Canadians that while he and Gursel still wished to review the matter with the Cabinet they could agree in principle However if a heads-ofugoyernment meeting occurred while the Turkish provisional Government were still in office it was doubtful Gur sel would attend Our Embassy comments that the provisional Government has been reluctant to become involved in long term planning or commitments and that its reply concerning Gursel s participation in a NATO meeting is consistent with the Foreign Office line that he will devote attention to domestic affairs Ankara 3006 6 21 C tactoQtO-Ittaonov squn UNITED NATIONS Argentina Opposes Security Council Postponement Argentine Representative Amadeo told our UN Mission yesterday afteran his Government wishedto continue with the Security Council meeting on the Eichmann case andwonld oppose any motion for postponement Amadeo planned to introduce his resolution ins speech this morning and hoped the Council could finiish its work on the resolution by noon tomorrow A UK delegate later said thatg as long as Argentina opposed postyonement he saw no further opportunity to postpone the meeting until after the partieshad spoken He believed and our Mission agrees that there would not be enough votes to support such nation The Israel Representative- told our Mission that a postponement motion was likely to be made and that it would be a serious matter if the US tookthe responsibility for continuing the Council meeting He warned that what happened in the meeting today Would have a great in uence on both the Council and Axnedeo insisted he had no flexibility in his instructions on 130 stponement when Lodge urged him last night not to introduce his resolution today and to agree to nostponement until Monday In reject y ing these suggestions Amsdeo argued that the resolntion would help restore a balance in any meeting between Ben Gurion and Frondizi Israel would have Eichmann and Argentin atwould have the resolution He said Argentinewes aware Israel would not return Eichmann and the resolutionwonld allow Argentina to close the case Earlier Amadeo had agreed subject to his Government s approval to our two suggested additions to the Argentine resolution However he liedlonnd the revised renolution prepared by the TOP SECRET Eyes Only For Designated Recipient TOP SECRET Eyes Only For Designated Recipient 24- France and Italy unpalatable because it went tee far toward Israel s position Meanwhile Embassy Paris was informed by the French yesterday that they understood Ben- Gurion and Frondizi had agreed temeet in Brussels on Friday New York 1423 1426 6 21 Paris 5982 6 FAR Denies Diver sien of US Aid The Vietnamese AinbassSader in replying to our May 13 demarche en developments in 1 Vietnamesw amtmdian relatiens has assured us that no US aid had ever been diverted to guerrilla activities VietuNam aypreciated US aid and concern ever increased guerrilla activit yg but faced with the fantastic credence ts pernicious propaganda given by the US it was te' note that Communist propaganda was beginning te bear fruit I We itemized est the greatest danger was Chinese Cemmunist intrusion I whichwould make all ether prebiems insignificant If this sheuid at our our class as sociatien- with Vie-t Nam and Thailand would require us to - ceme inc Meanwhile the Foreign Office has told Embassy Saigon i it had sericms doubts about maintaining its representatien in Phnem Perth isview of the repeated insults to Viet Nam printed in the Cambodian press To Saigon 2277 6 21 3 LD Saigon 3500 6 21 C Japanese Develepments Reperted Ike Minister of Inter- national Trade and industry has toid E ass y Tekve his goal was to succeed Kislii directly and he was eeniiderit he would be successful 'ikeda pointed eat that it was duty the suppert at his faction that had made it possible for the Government te get the Treaty through the Diet When asked abedt rumers concerning Socialist connivance with the anti-mains eam 0351 a sewedniideme metien to force Kishi down before the exchange at treaty ratificatien instruments Eteda said this was not likely The Embassy sentiments ikeda gave the impression he believed the Prime Ministership was within his grasp and would value US 10- speration From the viewpeint ef US interests Ikeda is by far Kishi- s 51 best successor sinee he believes in the Usmiapanese partner 7 ship and is antiwCemmunisto The Embassy also reports that although the Secialists and antiumainstreamers are continuing their efferts to unseatKishi the indications are that any 1ast minute efforts before the treaty goes into effect will not succeed TOP SECRET Eyes Only For Designated Recipient TOP SECRET Eyes Only For Designated Recipient -5- Meanwhile the Under Secretary has replied ts Alphand's request far our views onthe Japane se situation that if new elections were held Kishi s party would win again although perhaps with a smaller majority The Under Secretary said we had deteCted no reper- cussicns of the Japanese developments elsewhere in Asian Embassy Tokyo in the meantime make-s the following comments on the role of the Japanese police in the crisis 1 the police ant- security autherities remain loyal disciplined and effectively organized and are in no way influenced by the Communists and 2 the police have steadfastly sought ta limit the scape and extentsf the demonstrations and there is no evidence ts suggest their connivance with the demonstrators The Embassy ales s-lsserves that althuugh the situation has not been entirely satisfactory at senior police levels it consider 3 the police rank and file as the only element in Japan which has emerged with credit tram the recent incidents Tokyo 4352 6 21 C LB 4353 C 4347' To Paris 5438 6 21 8 yuulunnoncv-cn-greoqn AMERICAN RE PUBLICS ES Asks Cen siderstisn sf Cuban Problem a We have informed interested posts our Representative 1133 pointed cut to the InteraAmericsn Peace Committee that infuture reports the Cemmittee csuld not fail to the problem at Cuba as related to Caribbean tensions He me mtien ed femur aspects of the problem 1 interventienist activities of Cum representatives in ether ceuntrtes 2 Cuba s preventative acts against the and other c suntries 3 the increasing restart te tetali tartan petitisal and 4 the increasing sriemtatisn sf Cuban Emmet tsward that sf the Wet 0m Representative further made clear that the informatics on Cuba which we will seem submit would be to the Committee s request for infor'metien 0141 Caribbean tensiens and net as fermal charges Cuban Government To Caracas 1081 6 21 C TOP SECRET Eyes Only For Designated Recipient V - TOP SECRET Eyes Only 'For Designated Recipient EPE DISARMAMENT SHMMARY June 22 1960 Ten Nation Disarmament Conference a Gui- - delegation reperts that base-don Communist performance duringthe last two days there is relatively little danger that the Soviets will break off negotiations this week In any case if they should we would he in a good position to point out that they did so while we were engaged in consultation about the negotiations The delegation is concerned that if we are not able to make positive statements in the sessions immediately following Eaton s return to Geneva the Soviets might try to forestall our presentation by an immediate break It therefore suggests we consider requesting a recess in the first session following Eaton's return from three days to one week on the ground that consultation among the delegations is required in order to expedite the Conference work Meanwhile our NATO Mission has advised that in view of the Council s past insistence on adequate consultation concerning We stern disarmament proposals and of press reports thatthe Western consultations are for the purpose of modifying the present plan it expects a Council request today to consider any new or modified proposals before they are advanced at Geneva Geneva Deldi 214 6 21 C LD Paris Polto 2514 6 21 C Nuclear Tests Conference - Our delegation comments the last two meetings have indicated that our repeated challenges to the Soviets to comment-on the large number of We stern proposals now before the Conference may have struck home 011 Monday Tsarapkin introduced his amended draft of the Western staffing proposal and yesterday he Fresented a compromise proposal on the selectionand terms of office of the administrator and deputy administrators before his delegation had had time to polish up the draft text he has promised to present today Our delegation believes this new Soviet activity _may be designed to prevent us from increasing our allegations of Soviet stalling If it continues the tactical advantage we have lately had in this respect will he necessarily diminished unle severe in turn can feed in new material Yesterday a Soviet delegate remarkedto a member of our delegation that the Conference might as well agree on a substantial vacation period this summer since it obviously would continue into 1961 in view of our inability to reach policy decisions during an election period TOP SECRET Eyes Only For Designated Recipient we TOP SECRET Eyes Only For Designated Recipient Islemflazmscil Our delegate replied that since the negotiating Policy of the Conference woo not a partisan issue in the there would be no unusual difficulty informalating policy in the next few months Indeed we were iisturbed by the inde nite extension of the de facto moratorium which could not be allowed to continue indefinitelyg and-wished to press forwardwith the negotiations as rapidly as possible The Soviet delegate appeared surprised and impressed by thio rejoinder Our delegation comments that the pit eval'eoce of this thinking among Soviet delegates is undoubtedly due to the influence of the current Moscow line regarding the present administration and suggests we monomer the effect that some BS initiative on a major outstanding political issue in the Conference- would have on the Sov et asses sment of our apyroach to the negotiations Our delegation has learned that the EJK plans to suggest later this week that the Conference discoss the qua onion of what action should be taken at the end of a moratorium The UK will note that it sees no objection to an under ooding that conaulta tioo will takeplace as long a3 no restriction i3 placed on the freedom of individual decision in the event the three original parties areooablo to agree Our delegation hag sugge sized to the UK that two montho before the end of the moratoriom would be an appropriate date for initiating coagultationa Geneva 511131111 1158 Supnu 1165 Supnu 1166 6 21 C Supnu 1167 6 21 OUO TOP SECRET Eyes Only For Designated Recipient TOP SECRET 6 Eyes Only For Designated Recipient June 22 1960 VWSTAFF RECORD THE SECRETARY in 8 3 7371 lEXChange of State and Defense Officers - Proposed that State and Defense each furnish ten officers to be assigned to duty in the other department for a period of two years with five of the penchanges beginning in 1960 and the remaining five in 1961 designated the Deputy Under Secretary for Political Affairs as the representative of the Department to work with Defense in bringin 'this program into being 6 21 60 Signed letter UNCLASSIFIED a Action THE Users l 3 6 731 8 3 7357 3e Financial AssiStance for Chilean Reconstruction Approved a general approach to provide financial assistance for Chilean reconStructicn asked ARE to consult immediately with the DEF regarding the_posSiEility of DEF assistance in the housing field authorized an appropriate contribution from the FY 1961 Contingency Fund when available as a grant or as a loan to Chile repayable in local currency on terms applicable loans ' 6 21 60 -_Approved memorandum - CONFIDENTIAL Action ARA DcuglasQHays Amendment Determination on Jordan - Agreed that 'the Department in its contacts with Jordanian authorities shall continue its efforts by every appropriate means and at every appropriate opportunity to make clear the will of the peepl and Gavernment of the 0 5 with respect to the principles set out in section 2 of the Mutual Security Act determined pursuant to Executive Order 10610 as amended and delegation of authority No 85 as amended that efforts to give effect to these principles shall continue to be undertaken separately from the negotiations concerning assistance to Jordan 6 21 60 a Approved memorandum - CONFIDENTIAL Action NEA DEF loan for Honduran Hydroelectric Project Agreed at a DEF Board meeting to the establishment of'a DEF loan of $2 8 million to the Empre a'Nacional de Energia Electrica an independent Honduran government agency to finance a portion of the local currency costs of construction and installation for a 27MW hydroelectric project the loan to be repaid in 25 years in local currency at 3 5 percent interest 6 20 60 oar Board meeting GEFICIAL USE ONEY a Action TOP SECRET Eyes Only For Designated Recipient DECLASSIFIEU h WITHE UNDER SECRETARY FOR-POLITICAL AFFAIRS 1 8 8 6 9 Authority ff g TOP SECRET Eyes Only For Designated Recipient - in Loan to Turkey 6r Railway Eicteneion - Agreed at a DIF Board MEeting to the establiehment ofia DEF loan of $5 million to the Turkish Government to finance the foreign exchange costs of an extensionor a Singleutrack hrenCh line in eastern Turkey from MUS to Tetvan the loan to be repaid in Turkish lira in 20 years at 3 5 percent intereSt 6 20 60 DIF Board Meeting USE ONLY -- Action DEF Loan to India for Railway Equipment Agreed at a DEF Board Hosting to the establishment of fF loan of Eh 'million to the Indian Government to assist in financing the foreign exchange Costs of centralized railroad traffic control and overhead equip ment electric block signaling equipment and electric and diesel locomotives the loan to'be repaid in 20 years in rupees at 3 5 percent interest 6 20 60 - DIF Board Meeting - OFFICIAL USE ONLY - Action Temporar services for Air France Urged to GAB Chairman that favorable consideration be given a'Capitol AirWeys petition for reconsideration of its application for an exemption under Artic1e h16 b or the Federal Aviation Act of 1958 to permit that carrier to perform scheduled all-cargo services for Air France on a temporary basis 6 21 60 Signed Letter - UNCLASSIFIED - Action 3- e- DIRECTOR INTERNATIONAL l V PE Grant and Loan to Nepal Requestedg pursuant to Section ICA Record of Decisions dated 6 20 60 THE DEPUTY DIRECTOR Immummt coorem'nor AMINISTRATION Deobli anion ICA Record of dated 6 20 60 10h of the geles Agreement with India that the_Bureau of the Budget eIIOcate the equivalent in Indian rupees of $15 million representing the rupee equivalent of $1 million for a loan to Nepal and the rupee equivalent of $1h million fer a grant to Nepal requeSted further that the requirements cf Seetion of the sup IEE EtEl'Appropriations Act of 1953 be waived with respect to the rupee equivalent'of 51h million 6 16 60 - UNCLASSIFIED madam Airfield Concurred in the view 9 'Te 355 commitment in notes exchanng with Iran for the Sonetruetien or the Rwandan Air eld approved therefore the doobligetion $2 272 670 50 C1 10 omen 10 05 pm June 21 195 TOP SECRET Eyes Only For Designated Recipient