CURRENT INTELLIGENCE BULLETIN - 1956/01/18

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02989473
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 12
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: January 18, 1956

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CURRENT
/ INTELLIGENCE
/ BULLETIN
/4
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COGUNIENT NO.
NO CHANGE IN CLASS.
fl OECLASSIFIED
CLASS. CHANGED TO: IS S C
NEXT REVIEW DATE: .e0/
MOH: HR 70-2
DATE: JAEVIEWEH
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
� 41" / /7/,/
18 J
_0 3.5(c)
uary 1956
3.3(h)(2)V
Copy No. 103
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CONTENTS
1. MIKOYAN, ICAGANOVICH AND SABUROV INVITED TO
VISIT BURMA (page 3).
2. SOVIET OVERTURES TO LATIN AMERICA
(page 4).
3. MOSCOW CENTRALIZING DIRECTION OF ECONOMIC
"AID" ACTIVITIES (page 5).
4. AFGHANS ALLOT QUARTER OF SOVIET CREDIT TO
ARMY AND SECURITY FORCES (page 6).
5. THAI OPPOSITION LEADER REPORTED READY TO LEAVE
FOR COMMUNIST CHINA (page 7).
6. STATUS OF INDONESIAN CABINET
(page 8).
7. CSC MEMBER COUNTRIES MOVE TO ESTABLISH URANI-
UM PRODUCTION PLANT (page 9).
8. FORMALIZATION OF EAST GERMAN ARMY APPEARS
IMMINENT (page 10).
18 Jan 56
THE ARAB-LSRAE IA SITUATION
)(page 11)
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1. MIKOYAN, KAGANOVICH AND SABUROV iNVITED TO
VISIT BURMA
Comment The presence of the three leaders in
Burma would serve to dramatize, with
a maximum of propaganda coverage, the USSR's economic of-
fers to Burma. The experts who will precede the leaders prob-
ably will negotiate projects within the general framework of the
recent Soviet-Burmese declaration, which committed Moscow
to provide extensive aid in developing Burmese agriculture and
industry. Moscow's prompt action in fulfillment of its general
commitments will facilitate its effort to develop Burma into a
showcase for Soviet economic aid in Southeast Asia.
U Nu, perhaps more than any other ranking Burmese oniciai,
accepts Soviet offers of extensive economic and technical assist-
ance in good faith and is eager to proceed with their implementa-
tion. (Concurred in by ORR)
18 Jan 56
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2. SOVIET OVERTURES TO LATIN AMERICA
The USSR is ready to establish
diplomatic and trade relations with
all Latin American countries based
on "mutual benefitp according to
Premier Bulganin in a written reply to questions asked
by an editor of a Latin American magazine. He noted
that the Soviet Union could export industrial equipment,
machinery, and such products as timber, oil and chemi-
cals. In addition, he stated that the USSR would like to
participate in Latin American trade fairs and furnish
technical assistance in such fields as transport, agricul-
ture, electric power construction and various segments
of industry.
Soviet economic activities have been
aimed at exploiting Latin American economic and finan-
cial difficulties and have included purchases of hard-to-
sell surplus products, such as Argentine grain, Uruguayan
meat, and Cuban sugar. A step-up in Soviet exports, as
well as offers to buy from these dollar-short nations, has
increased Latin American interest in expanding direct trade
with the USSR.
Soviet bloc-Latin American trade totaled
about $250,000,000 in 1954 and increased in 1955, on the
basis of preliminary figures for the first six months.
To date Soviet technical assistance to
Latin America has been linitedJosmall amounts, generally
given under UN auspices. (Prepared by ORR)
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3. MOSCOW CENTRALIZING DIRECTION OF ECONOMIC
"AID" ACTIVITIES
Comment on:
tries
the Kremlin has centralized direc-
tion, of its economic aid operations
in underdeveloped free world coun-
under the Chief Directorate for Economic Relations.
This chief directorate has recently
been transferred from the Ministry of Foreign Trade to a
semi-autonomous status directly subordinate to the Council
of Ministers. The transfer reflects the importance attached
by Moscow to its economic activities abroad, since it is
Soviet practice to bring important operations directly under
(Prepared by ORR)
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4. AFGHANS ALLOT QUARTER OF SOVIET CREDIT TO
ARMY AND SECURITY FORCES
The Afghan cabinet on 9 January
decided that $27,000,000 of the
$100,000,000 Soviet credit to Afghan-
istan would be allotted to supplies
for the army and to the police and gendarmerie,
Thirteen mil-
lion dollars have been allotted to health and education.
Comment
Soviet participation in military, health
and educational projects may permit
penetration into three fields from which the USSR has hitherto
been exclude& (Concurred in by ORR)
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5. THAI OPPOSITION LEADER REPORTED READY TO LEAVE
FOR COMMUNIST CHINA
Thep Chotinuc hit, the leading advocate
of neutralism in Thailand, plans to
leave for Communist China via Hong
Kong
He is to be accompamea oy
three other members of parliament, as well as by representa-
tives of the Bangkok press.
The objectives of Thep's trip reportedly
include a study of Communist methods of administration, a
study of how to purge Thailand of feudalism, and an approach
to former Thai premier Pridi, now living in China, to ascer-
tain his ideas on Thailand's future.
Comment
Any favorable reports Thep might make
on his return would receive full play in the Bangkok press, which
has revealed distinct neutralist tendencies since press censorship
was lifted some months ago.
18 Jan 56 Current Intelligence Bulletin
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6. STATUS OF INDONESIAN CABINET
By lbreaking off negotiations on
common problems with the Dutch
on 16 January, the Indonesian cab-
inet may have gained a "stay of ex-
ecution." The opposition, however,
has succeeded in its major aim--
isolation of the Masjumi, the major
party in the cabinet. Whether the
cabinet falls shortly or survives un-
til the new parliament is seated is
largely dependent on the future course
of two government parties--the Nandlatul
Ulama and a small Moslem party. These parties, apparently
at President Sukarno's instigation, joined in criticism of the
government's handling of Dutch-Indonesian relations and may
now broaden their demands.
Fragmentation or continued isolation of
the Masjumi would pave the way for a National Party-NU coali-
tion, either joined by the Communists or dependent on their
support. That this is what Sukarno is seeking appears obvious
from his remarks to an anticolonialist rally on 15 January that
the ideologies of nationalism, Marxism, and Islam could be
united.
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7. CSC MEMBER COUNTRIES MOVE TO ESTABLISH URANIUM
PRODUCTION PLANT
The six governments allied in the
European Coal-Steel Community are
to be asked to give their "earliest"
approval to the setting up of an organ-
ization to construct on an urgent basis a plant for uranium
isotope separation. Representatives of a working group of
the Intergovernmental Committee on European Integration,
which approved the plan on 12 January, are all "confident"
or "certain" that their respective countries will approve it,
thus permitting the scientific experts to begin work "at once.''
The organization would draft plans and
make necessary financial arrangements for the plant, as well
as co-ordinate relevant scientific activities in the six coun-
tries. The recommendation provides that the national author-
ities responsible for atomic energy questions would make
available all required patented procedures and exchange clas-
sified information.
Comment
Adoption of the plan would be the first
practical step toward the setting up of
a European atomic energy agency.
European countries are increasingly con-
cerned over the fact that production of conventional fuels is
not keeping pace with industrial requirements. Spokesmen
for the CSC countries have argued that the European atomic pro-
gram would remain "subordinate" to programs elsewhere un-
til it had an independent supply of atomic fuels. They evidently
have regarded this problem as sufficiently urgent to warrant
immediate action before political agreement can be negotiated
on an over-all agency such as EURATOM. (Concurred in by
OSI)
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8. FORMALIZATION OF EAST GERMAN ARMY APPEARS
IMMINENT
The mounting propaganda demands
in East Germany for a "people's
army" suggest that the formaliza-
tion of a national army and defense ministry is imminent.
The actual announcement may be timed to coincide with or
closely follow the formal initiation of the West German
army build-up on 20 January.
The East German press on 17 January
reported that "more and more workers" were submitting res-
olutions to the East German parliament demanding government
action to authorize the formation of a "people's army." East
Berlin's Lord Mayor Friedrich Ebert in a speech at Frankfurt/
Oder on 17 January stated that the creation of a national army
was not merely a matter of defense but "part of East German
sovereignty." He declared: "We shall make full use of our
right, granted to us by this sovereignty, and fulfill thereby our
obligation which we have undertaken in the Warsaw treaty."
East Germany's armed forces now num-
ber approximately 118,000 men, of which 100,000 belong to the
ground forces. The other Warsaw pact members reportedly
have been pressing for their inclusion in the bloc's joint com-
mand.
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THE ARAB-ISRAELI SITUATION
(Information as of 1700, 17 January)
Egyptian forces at Sharm el Sheikh
had fired with light antiaircraft guns on a twin-engined
plane and believed they had damaged it. On the basis of a
Radio Israel broadcast, they believed it was an Israeli pas-
senger plane. Cairo said in early November it had notified
airlines that planes flying over the straits of Tiran, at the
mouth of the Gulf of Aqaba, would be shot down without warn-
ing.
A four-point preparedness program has
been drawn up by Prime Minister Ben-Gurion for presentation
to the Knesset. The program calls for the removal of all lux-
uries from Israel's economy, an extensive civil defense pro-
gram, mobilization of manpower for farm work, and a defense
tax to finance a new advisory national defense council. The
announcement of this program coincides with the publication
of an emergency committee report alerting the country to the
possibility of war. Aside from placing Israel on a near-wartime
austerity footing and thus also endeavoring to stabilize the coun-
try's shaky economic position, the program may also counter
opposition charges that the government has delayed in putting
the nation and the economy on a full war footing. The govern-
ment has been accused of "criminal negligence" in not briefing
the population on air raid precautions and taking steps to erect
shelters.
The Soviet freighter Alexander Nevsky ar-
rived at Alexandria on 12 January with an unusually heavy load,
including a deck cargo of double-tiered, large wooden crates.
It berthed at a pier outside the regular cargo security area but
was immediately placed under heavy guard. This precaution,
together with reports that a Soviet ammunition ship was expected
at Alexandria, suggests that the Nevsky may have carried some
ammunition. The Nevsky's arrival brings to six the number of
arms cargoes delivered by Soviet freighters from Black Sea ports
to Alexandria since 1 January and to 13 the total number of such
arms cargoes since deliveries began oi 22 October.
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