CURRENT INTELLIGENCE BULLETIN - 1956/06/28

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02989755
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 13
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: June 28, 1956

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NOT RELEASABLE TO
FOREIGN NATIONALS
CONTINUED CONTROL
CURRENT
INTELLIGENCE
BULLETIN
28 June 956
SC No. 02533/56
Copy No.
noc WENT NO. -
NO CHANCE IN CLAS3. yr-
f DECLk.3(.1.,IFIED
CLASS. CHANGED TO: TS S C
NEXT REVIEW DATE:
AUTH� HR 70-
0 3
DATE
3.5(c)
3.3(h)(2)
REVIEWER: 372044 1
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
This document contains information affecting the national
defense of the United States within the meaning of the espio-
nage laws, U. S. Code title 18, Sections 793, 794,and 798,
the transmission or the revelation of the contents of which
in any manner to an unauthorized person is prohibited by law,
THIS DOCUMENT MUST BE KEPT IN COMMUNICATIONS
INTELLIGENCE CHANNELS AT ALL TIMES
It is to be seen only by U. S. personnel especially indoctrinated
and authorized to receive COMMUNICATIONS INTELLIGENCE
Information. The security of this document must be main-
tained in accordance with COMMUNICATIONS INTELLIGENCE
REGULATIONS.
No action is to be taken on any COMMUNICATIONS INTELLIGENCE
which may be contained herein, regardless of the advantage to be
gained, unless such action is first approved by the Director of Central
Intelligence.
z _XOP-63-E7
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Comments and interPretations in this Publication
are based on all sources, including COMINT, and
represent the immediate views of the Office of
Current Intelligence. The Office of Research
and Reports and the Office of Scientific Intel�
ligence contribute or are consulted on subjects
within their spheres of responsibility.
The classification of a comment is noted sePa�
rately only when it is higher than that of the
report commented on.
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CONTENTS
1. PRAVDA P CRITICAL ARTICLE BY AMERICAN
COMMUNIST (page 3).
2. USSR MAY GET SYRIAN OIL REFINERY CONTRACT
(page 4).
3. INDONESIA ACCEPTS SOVIET AID OFFER
(page 5).
4. KOREAN ARMY CHIEF OF STAFF REPLACED
(page 6).
5. SUDAN CABINET MAY FALL SOON
6. TROUBLE IN GUATEMALA
(page 8).
page 7).
7. GOVERNMENT ESTABLISHES MARTIAL LAW
(page 9).
THE ARAB-ISRAELI SITUATION
(page 10)
rTHE_TAIWA7 STRAIT
(page 11)
28 June 56 Current Intelligence Bulletin Page 2
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I,. PRAVDA PUBLISHES CRITICAL ARTICLE BY
AMERICAN COMMUNIST
Comment on:
Pravda's republication of an article by
Eugene Dennis in the 18 June issue of
the New York Daily Worker suggests
that the Soviet leaders consider it neces-
sary to answer the explicit criticism of
the present Soviet administration by Western Communists.
Having informed the Soviet public of these critical questions,
they have set the stage for a direct reply.
Dennis asked if any of the present Soviet
leaders had tried to change anything in the period before
Stalin died. "Could the evil which was done have been cut
short earlier? How great and how serious are the changes
which have now taken place?"
In an obvious reference to the current
collective leadership, Dennis warned that "to count on the
infallibility of any group of leaders would mean to multiply
basic mistakes of the past and to learn nothing as a result
of the bitter mistake of Stalin being placed on a pedestal!'
Three members of the politburo of the
French Communist Party left for talks with Soviet leaders
on 26 June, and there are reports that Satellite Communist
leaders are also in Moscow for conferences. While in Moscow,
these Communist leaders will probably be given definitive an-
swers to questions raised by the anti-Stalin campaign.
28 June 56
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2. USSR MAY GET SYRIAN OIL REFINERY CONTRACT
Syria's Minister of Public Works Jabiri
told American embassy officials in
Damascus on 23 June, during Shepilov's
visit, that the Soviet bid to construct a
government-owned oil refinery is less than half as high as
the American bids and that he must give contracts to the
low bidder. He said the Russians have told him that they
will request permission to station 350 technicians at the
refinery site if they win the contract.
Jabiri made a strong plea that the United
States do something soon to block Soviet economic penetra-
tion of Syria, suggesting that the US find some way to sub-
sidize American firms bidding on projects.
Comment The general anti-Western atmosphere
in Syria will make it almost impossible
to award the contract to a Western builder unless his bid is
at least equal to the Soviet bloc bids.
The annual capacity planned for the
Soviet refinery reportedly is 19000,000 metric tons. Ac-
cording to present agreements, it will be supplied with crude
oil by the Western-owned Iraq Petroleum Company. Bids
have been submitted by firms from France, Britain, West
Germany, the Soviet Union, Czechoslovakia, the Netherlands,
Italy, Japan, and the United States.
28 June 56
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3. INDONESIA ACCEPTS SOVIET AID OFFER
Indonesia's announcement of "formal"
acceptance of Soviet aid, matching
assistance received from the United
States and under the Colombo plan,
may be a partial concession to Soviet insistence that nego-
tiations be concluded before President Sukarno's Soviet tour
in August. Previously, the Indonesians had stated that they
had accepted the Soviet offer only "in principle." The latest
report from the American embassy in Djakarta indicates
that the Indonesian Foreign Ministry prefers to postpone ac-
tual negotiations on details of the offer until mid-July in
order to benefit from President Sukarno's views following
his Western tour.
The amount of Soviet aid Indonesia will
accept has not been specified. If "matching assistance"
means equal assistance, the value of the aid would amount
to approximately $15,0.00,000.
28 June 56
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4. KOREAN ARMY CHIEF OF STAFF REPLACED
Comment on:
placement of South Korean army chief
of staff Chong Il-kwon removes from a
key post another of a group of pro-Amer-
ican officials who, prior to the May elec-
tions, represented a stabilizing locus of power below Presi-
dent Rhee. Chong's appointment to the less influential post of
chairman, of the joint chiefs of staff follows the removal of
former defense minister Son Won-il, who along with Chong
was felt to exert a moderating influence on Rhee.
The new chief of staff, Yi Hyong-kun,
who was previously chairman of the joint chiefs of staff, is
regarded as able and basically pro-American. He has gen-
erally been most reluctant to oppose Rhee, however, and
has often been the channel for the president's bellicose pro-
nouncements attacking the Communists and the Japanese.
28 June 56
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5. SUDAN CABINET MAY FALL SOON
Comment on:
The Sudanese cabinet of Prime Min-
ister Azhari is expected to fall soon,
possibly before 5 July. Reports from
Khartoum indicate Azhari will be re-
placed by the present defense minister,
Abdullah Khalil, who will head a coali-
tion of the present opposition Umma
Party and a new group, the People's
emocratic Party, formed among adherents of the Khatmia
religious sect.
While Egypt has long sought to get rid
of Azhari, it seems doubtful that a new cabinet would be sig-
nificantly easier for Cairo to deal with than the present one.
Sudanese nationalist feeling on the question of division of the
Nile River waters�the current outstanding issue between the
two countries--is probably strong enough to prevent any cabi-
net from settling it easily with Egypt.
28 June 56
Current Intelligence Bulletin Page 7
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6. TROUBLE IN GUATEMALA
Comment on:
The Guatemalan government's 26 June
declaration of a state of siege arises
from the serious situation existing in
the country on the approach of the sec-
ond anniversary of President Castillo
Armas' ouster of the pro-Communist Arbenz regime. The
declaration, establishing virtual martial law, followed po-
lice clashes with university students, including leftists and
pro-Communists, which resulted in several student deaths.
The students were demonstrating against earlier arrests
�of their colleagues and the "state of alarm" decreed by the
government on 24 June because of an alleged subversive
�threat involving leftists and students activated by Commu-
nists. A full-scale students' strike reportedly has started,
and further disorders are likely.
Castillo apparently still has the support
of the armed forces, which are essential to the maintenance
of stability. Ambassador Sparks has noted, however, that
the killing of students by the police during the latest demon-
stration will not be forgotten. He sees the possibility of a
chain reaction "which may undermine the prestige and even
the stability of the president and his government!'
28 June 56
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7. PERUVIAN GOVERNMENT ESTABLISHES MARTIAL LAW
Comment on:
he Peruvian government proclaimed
odified martial law on 26 June, nine
ays after the presidential and congres-
ional election. The freedom permitted
y the normally authoritarian govern-
ent for the election period had resulted
n a resurgence of leftist forces and in
omplete defeat for the presidential
candidate pu y nked with the administration.
The immediate occasion for the proc-
lamation was student rioting which involved burning of pub-
lic transportation vehicles and caused several deaths. Mean-
while, the most important federation of white-collar workers,
numbering 100,000, called a strike on 25 June. The white-
collar strike follows a series of successful labor bids for
higher wages and consequently intensifies fears for the sta-
bility of the Peruvian economy, in recent years one of the
most stable in Latin America.
The martial-law proclamation may mark
the resumption of Peru's traditional authoritarian govern-
ment.
28 June 56
Current Intelligence Bulletin Page 9
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THE ARAB-ISRAELI srr UATION
(Information as of 1700, 27 June)
The American military attach�n Tel
Aviv reports that on 26 June the Israeli army set up a road-
block cutting off a border road in the Jordan-Israel border
area where two Israelis were killed on 24 June. The attach�
believes this move could be part of preparation for an Israeli
reprisal against Jordan.
the new Israeli set-
tlement in the zone as a "veritable fortress" surrounded by ex-
tensive mine fields. three other new settlements
are being built in southern Israel, one near the southwestern
corner of the Gaza strip, another on the road between Beersheba
and El Auja, and a third southeast of El Auja. have
noted a large number of troops and equipment in e Negev, a
substantial part of them south of the demilitarized zone.
28 June 56
Current Intelligence Bulletin
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BIWEEKLY SUMMARY
14-27 June 1956
THE TAIWAN STRAIT
Report of the IAC Current Intelligence Group
for the Taiwan Strait Problem
There were no significant developments in the area
during the period. The subject of Taiwan and the offshore
islands has so far received a minimum of attention in the cur-
rent meetings of the National People's Congress in Peiping,
which last year devoted much of the discussion to that subject.
28 June 56
Current Intelligence Bulletin Page 11
CON & IAL
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TAIWAN STRAIT SITUATION
27 JUNE 1956 arms�I
CHINESE COMMUNIST AIRFIELD LEGEND:
USABILITY
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DESIGNATIONS
PRIMARY AIRFIELD
CONSIDERED MOST IMPORTANT IN
AREA WITH PREPARED RUNWAY
GENERALLY 5000 FEET OR LONGER.
SECONDARY AIRFIELD
AUXILIARY OR EMERGENCY BASES
OR FIELDS OF LESSER IMPORTANCE.
RUNWAYS GENERALLY LESS THAN
5000 FEET.
MIG-15
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