CURRENT INTELLIGENCE BULLETIN - 1956/03/24
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Publication Date:
March 24, 1956
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CURRENT
INTELLIGENCE
BULLETIN
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24 March 1956
Copy No. 103
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
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CONTENTS
1. EGYPT NOT BELIEVED PREPARING EARLY OFFENSIVE
AGAINST ISRAEL (page 3).
2. KING SAUD SAYS HE WILL RENEW DHAHRAN AIRFIELD
AGREEMENT (page 4).
3. GREEKS FEAR NEW ANTI-GREEK DEMONSTRATIONS IN
TURKEY (page 5).
4. INDONESIAN PRESIDENT'S ATTITUDE ON NEW CABINET
GIVES OPENING TO COMMUNISTS (page 6)0
5� EAST GERMAN COMMUNISTS CONFUSED BY SHIFT IN
LINE ON STALIN (page 7).
6. YUGOSLAV OFFICIAL COMMENTS ON KHRUSHCHEV'S
ATTACK ON STALIN (page 8).
7. SUBMARINE CONSTRUCTION REPORTED IN SHANGHAI
(page 9).
8� YEMEN NEGOTIATING FOR SOVIET ARMS
(page 10).
24 Mar 56
THE ARAB-ISRAELI SITUATION
(page 11)
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1. EGYPT NOT BELIEVED PREPARING EARLY OFFENSIVE
AGAINST ISRAEL
"there
is no positive evidence" that Egypt at
this time is taking military, political
or psychological measures which would indicate prepara-
tion for a Urge-scale offensive against Israel.
Egypt's armed forces have gradually
been placed on a war footing, but American observers be-
lieve they are not now capable of launching a successful
offensive action. The army is believed to be deployed de-
fensively, only a small percentage of pilots are near com-
bat readiness with Soviet-bloc equipment, and a large
number of navy personnel are still training abroad.
Prime Minister Nasr and his associates
appear confident that time is on Egypt's side, and it appears
Nasr stands to gain much more politically from the con-
tinued danger of war with Israel than from the "liquidation"
of this danger. Nasr, it is felt, also needs time to set up
a quasi-civilian regime which would make him more inde-
pendent of the army, and war now would not serve this
purpose.
While the Egyptian people are psycholog-
ically prepared to rally behind the government in case of
war, no special effo.rt has been made to whip up enthusiasm.
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2. KING SAUD SAYS HE WILL RENEW DHAHRAN
AIRFIELD AGREEMENT
King Saud told Ambassador Wadsworth
on 21 March that he had decided to re-
new the Dhahran airfield agreement with
the United States.
The king said that during his recent meet-
ing in Cairo with Egyptian prime minister Nasr and Syrian
president Quwatli it had been suggested to him that Egypt and
Syria would arrange to obtain arms from the Soviet bloc for
Saudi Arabia. The king said he replied he would take no arms
from such a source unless the United States refused to supply
him. He did agree to accept from Egypt 25 British jet planes,
and certain other types of arms of non-Communist origin.
Saud also stated Nasr and Quwatli felt as
he did that Communist penetration had to be resisted, and
that the Syrians desired assistance from the United States to
support them in this effort. The king reasserted the necessity
of Western action to keep Israel from resuming work on di-
verting Jordan River water.
Comment Saud's statement regarding renewal of the
Dhahran airfield agreement was almost
certainly intended to be qualified by his other statements on
his expectation of American arms support and American policy
toward Israel. The king usually leaves more direct bargain-
ing to members of his entourage, as presumably will be the
case in this instance.
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3. GREEKS FEAR NEW ANTI-GREEK DEMONSTRATIONS
IN TURKEY
The Greek a,mbassador in Ankara has
been instructed to make a demarche to
the Turkish government concerning
"persistent rumors" that anti-Greek
demonstrations were being planned in
Istanbul and Izmir for 25 March, Greek
Independence Day. Informing Ambassa-
dor Cannon of this on 22 March, Greek
foreign minister Theotokis said the Greek communities in
Istanbul and Izmir were in such a state of alarm that hide-
pendence Day ceremonies in Istanbul had been canceled and
the Greek consul general in Izmir had taken up the reports
with the local governor.
On 23 March, the governor of Istanbul
issued a communiqu�eferring to "harmful insinuations...
fabricated to annoy and agitate our Greek compatriots" and
announced that "even the slightest disturbance will not be tol-
erated."
Comment Similar reports were received in Athens
immediately before the anti-Greek riots
in Istanbul and Izmir last September. A repetition of those
riots on the same scale could hardly happen now without the
acquiescence of the Turkish government, since Istanbul is
still under martial law. However, isolated attacks on the
Greek community in Istanbul could occur at any time.
Tension between Greece and Turkey is
still increasing, and clashes on Cyprus between Greek and
Turkish Cypriots will inevitably have repercussions in both
countries.
The feeling of insecurity of the Greek
element in Istanbul persists because of recurrent suggestions
In the Turkish parliament and press for a new population ex-
change to be arranged between Greece and Turkey
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4. INDONESIAN PRESIDENT'S ATTITUDE ON NEW CABINET
GIVES OPENING TO COMMUNISTS
President Sukarno's statement on 21
March that the new Indonesian cabinet
is "not perfect" will enable the Com-
munists to use the president's prestige
to undermine the new coalition, accord-
ing to the American embassy in Djakarta. The Communist
press has already exploited the president's stand, empha-
sizing that the Communists want to unite the nation, and
calling on the people to work for a change in the cabinet's
composition.
Comment Sukarno reportedly wanted to include a
Communist sympathizer in the otherwise
fairly moderate cabinet, and delayed five days before giving
the cabinet his approval, presumably because the Commu-
nists had been excluded. He has stated several times dur-
ing the past few months that in view of the Communists' un-
expectedly large popular vote in the 1955 elections, they are
"acceptable" as ion as they work for "national unity"
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5. EAST GERMAN COMMUNISTS CONFUSED BY SHIFT IN
LINE ON STALIN
f-
ficials in the middle and lower echelons
of the Socialist Unity (Communist) Party
were totally unprepared for the sudden shift in party line on
Stalin. Many party members were demanding clarification
from the top leadership.
there were
serious differences of opinion among party members regard-
ing the extent of Stalin's guilt and that some Communists re-
jected the new concept of the former Soviet leader
Comment This reaction apparently predates knowl-
edge by the party's rank and file of Khru-
shchev's speech to a secret session of the Soviet congress
condemning Stalin.
In a speech in Berlin on 17 March, Ulbricht
tried to clarify the new concept of Stalin and admitted that his
open condemnation of the former dictator on 4 March had cre-
ated much confusion. Ulbricht's 4 March statement in which
he said that Stalin could not be "counted among the classic
figures of Marxism" was the first open criticism of Stalin
to follow the Soviet party congress.
Although the resultant confusion among
party members creates some problems for the leadership, it
is not believed that it will have any immediate effect on the
stability of the regime.
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V1. AAFAji N A 1L-11.4
6. YUGOSLAV OFFICIAL COMMENTS ON KHRUSHCHEV'S
ATTACK ON STALIN
� The Yugoslays have obtained a sum-
mary of the Khrushchev speech con-
demning Stalin, according to Franc Kos,
a high Yugoslav Foreign Ministry offi-
cia e os an American embassy officer on 22 March
that while this version was incomplete, the Yugoslays felt
it contained the gist of what occurred. They expect even
further revelations in the course of the "rehabilitation" of
Stalin victims, of whom they say 7,000 have already been
"rehabilitated," although not all of these are alive.
Kos. said that there was no indication
when Khrushchev and Bulganin visited Belgrade last May
that they were undertaking a plan to destroy Stalinism.
The Soviet leaders had consistently rejected Yugoslav state-
ments that Stalin was primarily responsible for the 1948
break and had insisted that Beria had deceived Stalin.
Kos indicated his belief that if last
October's foreign ministers' conference in Geneva were
held now, the results would be much more satisfactory,
particularly with respect to East-West contacts. Kos
doubted that the Cominform would be formally dissolved,
but suggested instead that the USSR may be allowing it to
lapse.
Kos said that the Yugoslav attitude to
these Soviet developments was to "wait and see" until deeds
match words but that Yugoslavia was not prepared to say
this publicly.
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7. SUBMARINE CONSTRUCTION REPORTED IN SHANGHAI
reportect to have
seen "Russian coastal-type" submarine
hulls being built at the Kiangnan dockyards in Shanghai. The
lwas told that electronic equipment and engines
came from the USSR.
Soviet technical advisers accompanied
on its tour of the Kiangnan yard, which was
reported as a 'beehive of activity."
Comment
This is the first report that submarines
are actually being built at Shanghai. How-
ever, the presence of
substantial numbers of Soviet naval technicians there since
January 1955, and submarine experts at Kiangnan since at
least April.
Soviet technicians have also reportedly
been observed at nearby Moller's shipyard, where a de-
stroyer or frigate-type ship apparently is being constructed.
Large numbers of workers are engaged in expanding facili-
ties at Moller's. (Concurred in by
ORR)
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8. YEMEN NEGOTIATING FOR SOVIET ARMS
Soviet repre-
sentatives had asked for a detailed state-
ment on Yemen's arms request.
they wished to know what
ercen age o e cost Yemen would pay. The USSR would
consider the balance as "aid without any obligation" and had
given assurances there would be "no trouble" about barter
arrangements, which the minister suggested might include
coffee. The Soviet representatives said delivery of the arms
would be completed two months after conclusion of an agree-
ment.
Yemen's arms list
should include 100,00 hand grenades, 2,000 revolvers, 20,000
rifles, 200 small and 500 to 1,000 large machine guns, 100
antiaircraft guns, 500 self-propelled cannon, 24 cannon for
shore batteries, 100 armored cars, 200 armored troop car-
riers, and 10 airplanes, plus spare parts "for everything" and
the required experts "to be defined by us."
Comment Yemen approached the USSR for arms as
early as mid-1953. Contacts were re-
newed after the announcement of the Egyptian-Soviet bloc deal
last September, and a Soviet "economic mission" visited
Yemen in January.
The list of equipment
seems far beyond what Yemen could
absorb, may be intended as a basis for bargaining. The imam's
immediate objective in obtaining arms is probably to increase
pressure on the British protectorate of Aden with which Yemen
has had long-standing border disputes. (Concurred in by ORR)
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THE ARAB-ISRAELI SITUATION
(Information as of 1700, 23 March)
Recent reports indicate that Israel is
concentrating large armored and infantry forces around Beer-
sheba, headquarters of the Southern Command which controls
the front against Egypt. On 20 March, a heavy southward
movement of military and requisitioned civilian vehicles was
observed north and south of Beersheba, transporting POL cargo
and personnel. Other reports suggest the Israeli forces in the
El Auja area on the Egyptian frontier have again been increased
to include infantry, armor and artillery, possibly including
155-mm.
complete mobilization of Israeli first-line units will be accom-
plished by a "creeping process" by 31 March. The unusual
activity of forces in the Southern Command could indicate prep-
arations for large-scale maneuvers or preparations for support
of operations on the Egyptian frontier.
Meanwhile further reinforcement of Egyp-
revealed by Egyp- ,
tian forces on the Israeli frontier, including dispatch of an
armored squadron from Cairo to El Arish,
tian military messages.
Egyptian air force during the last ten days
A marked decline in flying activity by the
While this may have been in-
tended to conserve fuel, there is no indication of a fuel shortage.
Movement of Egyptian aircraft to Sinai airfields, while possible.
is unconfirmed.
Syrian troops have reoccupied positions on
the northeast side of Lake Tiberias which were destroyed by the
Israeli raid last DecemberL, and
fortifications have been constructed in a narrow strip which is
claimed by Israel. The Syrians are also reported to be using
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searchlights to illuminate certain frontier areas, notably
the Banat Yacov bridge and the Jordan River outlet to Lake
Tiberias.
An unconfirmed report from Jordan
states that a "number" of tanks, armored cars and trucks
were heading north through West Jordan on 21 March, ac-
1.ovement of the Arab Legion's armor
into this area would indicate that the Legion is beginning to
follow the Arab tendency to dispose too many troops too far
forward.
The secretary general of the Syrian
Foreign Ministry told Ambassador Moose on 22 March that
the Syrians would fight at Banat Yacov "if attacked." In reply
to Moose's comment that this appeared to be a change from
Syria's previous statements that it would resist by force an
Israeli resumption of work in the demilitarized zone, the of-
ficial said "that was before Prime Minister Ghazzi's trip to
Cairo." Moose comments that possibly Syria has changed its
position on Banat Yacov, The Syrian statement is probably not
intended to imply that Syria would not resist an Israeli resump-
tion of digging at Banat Yacov. It suggests rather that Egypt
has probably reiterated to the Syrians that they should first ex-
haust all means short of hostilities should the Israelis resume
digging.
Israeli ambassador, Avidar, who has re-
cently returned to his post in Moscow, has been instructed not
to raise the question of arms aid with the Soviet Union, accord-
ing to information received by the American embassy in Tel
Aviv. If, however, the United States makes a negative reply
on Israeli requests, the question of turning to the Soviet Union
will be given active consideration.
Israel is trying with Nicaraguan help to ob-
tain 58 tanks from Canada. Nicaragua, according to the arrange-
ment, would be the ostensible purchaser and transshipper to
Israel and would receive four to eight tanks for its part in the
transaction.
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