CURRENT INTELLIGENCE BULLETIN - 1956/11/17

• Document Type: SPECIALCOLLECTION
• Keywords: 2018 Sanitization
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03002993
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 11
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: November 17, 1956

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17 November 1956
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SC No. 05751/56
Copy No. 112
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OFFICE OF CURRENT INTEL IGENCE
CENTRAL INTELLIGENCE AGENCY
This document contains classified information affecting
the national security of the United States within the
meaning of the espionage laws, US Code Title 18, Sections
793, 794, and 798. The law prohibits its transmission
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CONTENTS
1. THE SY
SITUATION (page 3).
2. TENSION CONTINUES IN HUNGARY (Secret Noforn) (page 5).
3. VATICAN CIRCLES REPORTEDLY FEEL POLISH CHURCH
SHOULD BACK GOMULKA (Secret Noforn) (page 6).
4. INDIA ACCEPTS NEW $126,000,000 SOVIET LOAN
(Confidential) (page 7).
5. HANOI ADMITS NEW OUTBREAKS AGAINST THE REGIME
(Secret) (page 8).
6. "DEAL" ALLEGED BETWEEN LAOTIAN PRIME MINISTER
AND PATHET LAO CHIEF (Secret) (page 9).
7. INDONESIAN ARMY TERRITORIAL COMMANDER THREATENS
GOVERNMENT (page 10).
17 Nov 56
Current Intelligence Bulletin Page 2
SECRET PIVOT
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1. THE SYRIAN SITUATION
Britain and France may be con-
templating direct action in Syria under
the pretext of preventing a Soviet take-
over. Co-operation of Israel, Turkey
and possibly Iraq in one manner or
another is alsp suggested.
France has two
"solutions" in mind for the Syrian
problem: (1) an autonomous Syria un-
der former premier Shishakli, whom
the French and British believe strong
pnough to control Syria and prevent fur-
ther Soviet infiltration, or (2) annexa-
tion of Syria and northern Jordan by
Iraq, with the southern part of Jordan going to Israel,
whose boundaries would be guaranteed by Britain and other
"interested parties:'
the French and
British were already in touch with Shishakli, and French
representatives were discussing a Syrian plan with British
prime minister Eden "now:' the French had
never taken seriously the "Soviet volunteer" threat in the
Suez crisis. the "humiliation" of the second
London conference on Suez and greater UN interest in Suez
than in the Hungarian situation had "finished off the UN for
France:'
To offset the evident failure of their Suez
intervention to achieve any of its original objectives, both
Paris and London are playing up the magnitude of the build-
up of Soviet arms in the Middle East. French officials have
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Current Intelligence Bulletin Page 3
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particularly emphasized a build-up in Syria. In view of
several suggestions that both governments feel the US and
USSR counterbalance each other in the Middle East, Eden
and Mollet may possibly be considering further drastic
action, as suggested by Pineau.
The Turkish government, in a formal
memorandum to the United States, has expressed its great
concern over Soviet activities in Syria and stated that
Ankara had a "sacred duty" to take any steps necessary to
protect itself. Turkey would probably be willing to par-
ticipate in any joint move to intervene in Syria. Other in-
dications of possible Dlans for action in Syria come from
Israel and Iraa.
urged
quick American action to halt Soviet a vances an ring
about a change of government in Syria. On 13 November
top Iraqi army officers appealed for speedy American ac-
tion to assist Iraq in preventing further Communist gains in
the area.
17 Nov 56 Current Intelligence Bulletin
Page 4
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lerM.PC Er
2. TENSION CONTINUES IN HUNGARY
Soviet tanks and armored
ars resumed their "aggressive patrol-
ing" of Budapest on the afternoon of
5 November. There were large crowds
n the streets protesting the deportations
o the USSR, according to press sources.
e American legation considers possi-
ly true a report that the USSR is bring-
ng in sizable numbers of infantry troops,
ince the USSR has not been able to restore
rder with mechanized units.
n attempt by the regime on 16 November
o begin a back-to-work movement--by
�roadcasting a plea from the so-called
Central Workers' Council of Budapest for
an end to the general strike�apparently
backfired when individual Budapest work-
ers' councils reportedly repudiated the
statement and "fired" the union officials
who had issued it. The vast majority of
workers apparently will refuse to work,
at least until tneir demands--including a cessation of depor-
tations to the USSR--have been implemented, not just prom-
ised.
The Kadar regime continues to press for
wider domestic political support. In addition to expressing
willingness to talk with Nagy, Kadar has indicated dcs1rc
to have three Social Democrats in the government,
and is also reported seeking the
support of leaders of the Peasant and Smallholders Parties.
In an apparent effort to demonstrate na-
tionalist intentions, the Kadar-controlled Budapest radio
broadcast the full text of Tito's attack on the errors in the
Soviet system and mistakes of Soviet leaders which led to
the "Hungarian slaughter!' (NOFORN)
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Page 5
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3. VATICAN CIRCLES REPORTEDLY FEEL POLISH
CHURCH SHOULD BACK GOMULKA
Vatican circles,
believe the Polish
Church the Gomulka re-
gime if it pursues a "nationalistic
an t" course. Cardinal Wyszynski, the Polish
primate, will soon visit the Vatican with the approval of
party first secretary Gomulka. (NOFORN)
Comment
Gomulka's quick restoration of Wyszynski
to his office as primate reflects the new
regime's eagerness for the co-operation of the Polish Church.
As a further step, the government recently appointed a min-
ister to deal with church-state questions. Wyszynski in
public statements has already implied that he supports
Gomulka.
The backing of the regime by the Polish
Church would presume some concessions from the govern-
ment on such outstanding differences as the question of
religious instruction in state schools, the Vatican's insist-
ence that no bishops be appointed to the new dioceses formed
in the western territories of Poland until Germany's eastern
frontier has been finally established, and freedom of the church
in respect to publications and the operation of seminaries.
Vatican leaders have long disagreed over
the most effective method of dealing with the Soviet bloc. To
date the proponents of a consistently uncompromising line
have prevailed in forming Vatican policy.
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IN I IAA'
4. INDIA ACCEPTS NEW $126,000,000 SOVIET LOAN
India has accepted a new Soviet loan
equivalent to $126,000,000, repayable
in rupees, for industrialization under
its Second Five-Year Plan. New Delhi
not only lacks $1,600,000,000 to finance
the plan, but its foreign exchange hold-
ings dropped abnormally by 20 percent
between April and September.
The press reports that the loan is to be
used for construction of a government-controlled oil re-
finery, a heavy machinery manufacturing plant, and fer-
tilizer plants, and to buy mining equipment and other ma-
chinery from the USSR. K. C. Reddy, India's production
minister, who presumably negotiated the loan during his
visit to the USSR in October, indicated before his visit that
a new shipbuilding yard might also be involved.
India obtained a $115,000,000 credit from
the USSR in March 1956 for construction of a new steel plant.
Terms of repayment of both loans are reportedly the same--
2.5-percent interest repayable in 12 annual installments.
Repayment of the Soviet credits will
probably necessitate a major increase in India's exports
to the USSR, which totaled only $5,000,000 in 1955.
(CONFIDENTIAL)
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5. HANOI ADMITS NEW OUTBREAKS AGAINST THE REGIME
In a Hanoi broadcast of 16 November,
the Viet Minh frankly admitted incidents
of open violence in North Vietnam and
the existence of widespread discontent.
The broadcast reported the use of troops
to put down a "counterrevolutionary up-
rising" in a Catholic area, and admitted
that there had been sabotage and "confu-
sion" in a number of other regions.
The broadcast substantiates reports of
increasing pressure for reform in North Vietnam. Popular
demands for intellectual freedom, democratization of the
government and a slowdown in collectivization have recently
been reported. Reforms along these lines were announced
in an early November communiqu�f the Council of Minis-
ters, and Hanoi now promises continuing efforts to "correct
mistakes" and to "satisfy the aspirations" of the people.
Despite these promises, growing dissi-
dence in North Vietnam, coupled with recent events in
Eastern Europe, will probably stiffen Viet Minh determina-
tion to move cautiously and to prevent its own "liberaliza-
tion" program from encouraging anti-Communist tendencies.
While paying lip service to freedom of speech, the Viet
Minh leaders have condemned "rightist attitudes favoring
the dissemination of reactionary thoughts and acts which
are harmful to the people's unity."
17 Nov 56 Current Intelligence Bulletin
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. "DEAL" ALLEGED BETWEEN LAOTIAN PRIME MINISTER
AND PATHET LAO CHIEF
Souvanna
and his half-brother, Pathet Lao chief
Souphannouvong, have 135,passed the mixed
commission and reached private agree-
ment in secret on dit_s_n_.e_d_a_sAm- of a political and military
settlement, announcement will be de-
layed until a third brother, Prince Petsarath, returns from
self-exile in Thailand, so that he can use the political credit
in his bid for the premiership.
that an overwhelming majority of deputies and politicians fa-
vor Petsarath as prime minister and that the latter would
insist on Souphannouvong, whom he holds in high esteem, be-
ing included in the cabinet or given some other high post.
Comment Souphannouvong has been in Vientiane
since 7 November where he has been in
frequent contact with Souvanna Phouma, various leading
politicians, the international control commission, and the
king.
Petsarath, whose return is reported
imminent, regards the Pathets primarily as nationalists,
and his overriding personal ambition may lead him to co-
operate with the Pathets to further his own interests.
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7. INDONESIAN ARMY TERRITORIAL COMMANDER
THREATENS GOVERNMENT
unless the two army colonels arrested for plotting
o overthrow the government are "rehabilitated im tel
117P Chnll not he answerable for the consequences."
During the past three months resent-
ment within the Indonesian army has intensified as a result
of the chief of staff's efforts to restrict political activities
and circumscribe the power of territorial commanders.
There have also been numerous reports of an impending
coup d' etat.
The threat sug-
gests an intention to encourage at least a passive army revolt
against headquarters and the cabinet, a tactic that was suc-
cessful in bringing about the downfall of the first All cabinet
last year.
In the event of a showdown between the
army and the government, could prob-
ably expect considerable support. He would probably be
joined by the nationally respected commander in North Suma-
tra, Colonel Simbolon, who has also protested the arrests in
Djakarta. In addition, the chief of police is
working for a military dictatorship, army units in the
West Java command are known to be disgruntiedl, and the
commander in East Indonesia has adopted a policy of "wait and
see."
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Current Intelligence Bulletin Page 10
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