CURRENT INTELLIGENCE BULLETIN - 1956/05/03

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02995615
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 13
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: May 3, 1956

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CURRENT
/ INTELLIGENCE
BULLETIN
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3 May 1956
Copy No. 1113
DOGLIMENT NO. _
NO CI IANGE IN CL:;:.,
DECLASSWIEn
CLASS. GI iANGEO TU.
NEXT 1,.`iVITJI.,1 DA
At 1 H: NH 70-2
1.14.14.704_ REVIEWER
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
TOP SECRET
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CONTENTS
1. LATIN AMERICAN UN DELEGATES TO PRESENT COM-
PLAINTS ON ECONOMIC AID FROM US
(page 3).
2. BRITAIN MIGHT MATCH ANY UNILATERAL SOVIET DEMO-
BILIZATION MOVE (page 4).
3.
4. BURMA PRESSING COMMUNIST CHINA FOR CASH IN
EXCHANGE FOR RICE (page 6).
5 COMMUNISTS INCREASE STRENGTH IN BURMESE ELECTION
(page 7).
6. LAOTIAN PRE"TrP ArrrQ rANDITIONS FOR TALKS WITH
PATHET LAO (page 8).
7. EGYPTIAN pRIME MINISTER COMMENTS ON RELATIONS
WITH USSR (page 9).
8. PRIME MINISTER OF NEPAL TO VISIT COMMUNIST CHINA
(page 10).
3 May 56
* * * *
THE ARAB-ISRAELI SITUATION
(page 11)
* * * *
�THE TAIWAN STRAIT
page' 12)
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1. LATIN AMERICAN UN DELEGATES TO PRESENT
COMPLAINTS ON ECONOMIC AID FROM US
The Latin American delegates to the
United Nations plan to present their
governments' complaints about United
States economic aid
According to
prevailing opinion
the Latin Americans should "for the moment"
limit themselves to requesting: (1) an increase in United
States purchases of Latin American goods and an agreement
on quotas, (2) more credit and better terms from the Export-
Import Bank; (3) the channeling of technical aid through the
United Nations and regional organizations "in order to pre-
vent indirect intervention by Point IV officials in the inter-
nal affairs of our governments," and (4) long-term credits
for educational projects.
Comment While Latin American countries have
indicated a stronger interest in inter-
national economic assistance than in Point IV, they have not
in the past seriously alleged "indirect intervention" in inter-
nal affairs by Point IV officials. Latin American officials
have frequently stated that the United States should increase
both its purchases and its credits in Latin America. Such
statements received fresh impetus from the Bulganin over-
ture of last January concerning a possible increase in Soviet
trade with Latin America�
3 May 56
Current Intelligence Bulletin Page 3
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2. BRITAIN MIGHT MATCH ANY UNILATERAL SOVIET
DEMOBILIZATION MOVE
Britain might match any unilateral
Soviet demobilization with reductions
of its own, Foreign Office permanent
under secretary Kirkpatrick has told
the American embassy in London. The British believe,
he said, that Khrushchev's remarks in Britain indicate a
Soviet intention to reduce substantially the Soviet conven-
tional forces without a disarmament agreement. Conse-
quently, the Western position of "no disarmament with-
out German reunification" no longer exerts appreciable
leverage on Moscow. Kirkpatrick said that Britain is
therefore considering informing the Germans that its pol-
icy no longer precludes British disarmament before German
reunification is achieved.
Kirkpatrick insisted that any such British
reduction would be based strictly on a reassessment of
British defense needs in light of any Soviet disarmament,
rather than on a feeling of any obligation, "moral or other-
wise," to reciprocate.
Comment By communicating such possible inten-
tions to the Germans at this time, the
British probably would hope to prod them into agreeing to
pay $140,000,000 in support of British forces for another
year, lest those forces be reduced, after the present agree-
ment expires on 5 May.
Britain's present military manpower plans
call for a cut from 800,000 to 700,000 by 1958.
3 May 56
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4., BURMA PRESSING COMMUNIST CHINA FOR CASH
IN EXCHANGE FOR RICE
Comment
the question of cash payments by the
Chinese has been a subject of contention between Rangoon
and Peiping for several months.
The Burmese ambassador has appar-
ently been using American opposition to the export of rubber
to Communist China in an effort to get maximum concessions
from the Chinese. Actually the Burmese have been informed
they would not be considered ineligible for American assist-
ance as the result of the export of a few thousand tons of
rubber to Communist China,
As Communist China's rubber procure-
ment program in South Asia has been designed to encourage
violations of the UN-sponsored embargo and the Battle Act,
Peiping might be persuaded to make a better offer. The
25 percent in cash requested by the Burmese amounts to
about $3,000,000.
3 May 56
Current Intelligence Bulletin
Page 6
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5. COMMUNISTS INCREASE STRENGTH IN
BURMESE ELECTION
Unofficial returns on 164 out of 238
parliamentary seats contested in last
Friday's elections indicate that al-
though Premier Nu's Anti-Fascist
People's Freedom League (AFPFL)
will retain a substantial majority in
the new lower house, the Communist-
led National United Front has made
significant gains.
So far, the Front has won 33 seats,
thus increasing its representation by at least 20. Final
returns are expected to give the Front about 30 percent
of the total vote. This improved showing probably stemmed
from the popularity of its appeal for an end to the "civil
war," and from its ability to attract the large protest vote
against the regime.
The Anti-Fascist People's Freedom League,
which has always felt more insecure than its strong parlia-
mentary position would seem to warrant, will probably move
to placate the extreme left-wing sentiment reflected in
electoral returns. Pressure may develop within the League
in favor of softening the terms for the re-emergence of the
insurgent Burma Communist Party as a legal political entity
and for another effort to achieve "leftist unity" such as was
attempted in 1948 just after the Communists went underground.
3 May 56
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6. LAOTIAN PREMIER STATES CONDITIONS FOR TALKS
WITH PATHET LAO
Premier Souvanna Phouma, in his
reply to the 26 April request of
Pathet Lao leader Prince Sou'phannou-
vong for direct negotiations, made
acceptance of the government's authority over the two
northern provinces a prerequisite for any meeting with
the Pathets. Souvanna told the American charg�e had
also ruled out any visit to Hanoi or Peiping until the Pathet
Lao problem was settled--"without external intervention."
In his statements to the charg�he
premier was cautiou.sly optimistic about the outcome of
talks with Souphannouvong. He said he had the impression
the Pathet Lao.werd on the defelisiire and that he would be
able tO exploit the differences between those Pathets who
were oriented toward the Viet Minh and those who were
"nationalists." The charg�however, points out the'.premi-
er is basically naive and may well "give something away
without meaning to."
Comment
The premier's statements indicate that
he is strongly attracted to the idea of
negotiating with his half brother.
3 Nlay 56
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7. EGYPTIAN PRIME MINISTER COMMENTS ON
RELATIONS WITH USSR
Comment
It is likely that Nasr for prestige
reasons has exaggerated the extent
to which the Russians confided in him before issuing
their 17 April statement. Whatever was told him seems
to have been enough to get him to adopt a moderate line
on the Soviet communiqu�
/gases reported statement on not
relying on the USSR suggests that he maintains a cautious
attitude toward the Soviet bloc.
3 May 56
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8, PRIME MINISTER OF NEPAL TO VISIT
COMMUNIST CHINA
Comment
Nepalese prime minister Tanka
Prasad Charya has accepted an in-
vitation to visit Communist China.
No date for the visit has been set.
Closer relations have been develop-
ing between Nepal and Communist
China since the two countries established diplomatic re-
lations last summer. An offer of economic and technical
assistance which the Chinese Communists made to Nepal
last February will probably be discussed during the visit.
Although Prasad's acceptance is likely
to cause some concern in India, which has an important
security interest in Nepal, New Delhi is unlikely to attempt
to block the visit.
3 May 56
Current Intelligence Bulletin Page 10
CONFIDENTIAL
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THE ARAB-ISRAELI SITUATION
(Information as of 1700, 2 May)
UN secretary general Hammarskj old
has delayed his departure from the Middle East, apparently
in a further effort to get the Arab states and Israel to come
to some sort of agreement on the dispute over the Israeli plan
to divert the Jordan River waters at Banat Yacov. Syria,
Jordan, and Lebanon have stated that if they agree to a cease-
fire, Israel must agree not to resume digging at Banat Yacov.
(Press)
reports that heavy military traffic, including military and
requisitioned civilian vehicles, artillery and half-tracks, was
heading south on 30 April.
Greece has granted permission to the
Egyptian government for overflight of Greek territory by about
20 Soviet-made IL-14 piston-engined transports. The planes
are to have Egyptian markings and are to be flown by Egyptian
crews.
the first group of ten
IL-14's would be ready for delivery as soon as Egyptian flight
crews had received the necessary two-week training. Delivery
_a_f_thas_p_Apii_carahur hA necterLaLamr_time.
nine of Egypt's MIG jets have crashed at Almaza airfield near
Cairo and three or four more in the desert.
the crashes were due tqlpoor maintenance and pilot errors.
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