CURRENT INTELLIGENCE BULLETIN - 1957/04/19
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CURRENT
INTELLIGENCE
BULLETIN
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19 April 1957
Copy No. 134
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
TOP
SECRET
7,23/17/7/70 ardo
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CONTENTS
. SOVIET OFFICIALS SUGGEST TOP-LEVEL CONFERENCE
WITH THE WEST (page 3).
412. THE JORDANIAN SITUATION
it 03. GREEK-TURK TENSIONS MAY EASE
(page 4).
(page 5).
64. KISHI PROPOSES US AND JAPAN CO-OPERATE ils,T E C -
NOMIC DEVELOPMENT OF SOUTHEAST ASIA
page 6).
SOVIET LEADERS EXPRESS OPTT IMPROVED
INTERNATIONAL RELATIONS ff (page 7).
0(46. MIKOYAN COMMENTS ON POLITI ALfiFFECT OF SOVIET
INDUSTRIAL REORGANIZATION (page 8).
P7. ADEN-YEMEN DEVELOPMENTS
(page 9).
8. PRO-SOVIET DIPLOMAT TO BE BURMESE PREMIER'S
LI PERSONAL SECRETARY (page 10).
.)9. OVERSEAS C
ELECTIONS
LUENCE PHILIPPINE
ANNEX--Conclusions of the Watch Report of the Intelligence
Advisory Committee
(page 12).
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1. SOVIET OFFICIALS SUGGEST TOP-LEVEL CONFERENCE
WITH THE WEST
Comment on:
First Deputy Premier Mikoyan told Am-
bassador Bohlen on 17 April that the Soviet
government did not understand why the United
States, Britain and France were not prepared
to talk over Middle East problems, and said
that he felt if this were done some areas of
common interest could be found. Mikoyan as-
serted that the chief Soviet interest in the
Middle East lay in the security field, that his government did not
wish to see the installation there of Western, particularly Amer-
ican, military power, and that the Soviet Union felt that as a great pow-
er it had a right to have its interests in bordering areas recog-
nized. His remarks were made in response to Bohlen's suggestion
that one of the Soviet purposes in the area was to use control of
the oil supplies as a weapon of pressure against Western Europe.
Other Soviet officials have suggested recently
in public and private statements that the USSR is seeking a top-
level conference on Middle Eastern problems, or possibly even
another summit conference.
A TASS representative in Western Europe em-
phasized in a private conversation on 10 April the desirability of
a top-level conference between the United States and the USSR on
the Middle East. He said the events in Hungary and the Middle
East have brought Soviet-American relations into "a new situation,"
and that the two countries must try to find settlements to key prob-
lems. He suggested that the Middle East might be a good start-
ing point, and that within the framework of a Middle East confer-
ence "we could talk about many other things:'
A Soviet request for a conference on the Mid-
dle East, delivered to the Western powers and India on 11 Febru-
ary, was rejected by all the addressees except India. Such a con-
ference has since been a recurrent theme in Soviet propaganda.
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2. THE JORDANIAN SITUATION
Reference:
Jordanian prime minister Khalicli, in
his first interview with Ambassador
Mallory on 17 April, stated that great
difficulties could arise if Ambassador
Richard& mission should arrive in Amman
at this time. He said that a delay of eight
or ten days would be helpful, and that in
the meantime he would study the question
of the exact wording of an invitation, which
he considered to be important.
Khalidi stated that what had looked like the
eruption of "several volcanoes" in Jordan now
appeared to be changing to a period of relative calm The new
prime minister said he regarded the formation of his cabinet as
"almost miraculous" in the sense that a number of people who
had foresworn any government activity had been induced to re-
turn to public life.
The armored units which had been stationed
in Amman reportedly returned to their barracks on 17 April.
The decree issued on 18 April confirming the appointment of
General Hiyari as chief of staff in place of exiled general Nuwar
should serve to stabilize the situation further.
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NE1,1iET
3. GREEK-TURK TENSIONS MAY EASE
Comment on:
Tension between Greece and Turkey over
he arrival of Archbishop Makarios in
Athens appears to be easing, at least for
the present. Athens' reception of Makarios--
personifies the enosis struggle to the
Turks--produced no immediate violent
reaction in Turkey, despite the archbishop's
ration to the crowds reiterating his demand
or self-determination.
Turkish prime minister Menderes issued a
statement over Ankara radio on 18 April
hich was considerably milder than that he
had previously planned to deliver to the National Assembly a
day earlier. After deploring the British release of Makarios as
an "injudicious action," he nevertheless expressed the hope that
Britain and Turkey, whose relations are "extremely cordial,"
would proceed together toward a solution of the Cyprus problem.
Menderes characterized Makarios as "nothing but a nottirious
terrorist" and placed responsibility for his words and deeds on
Athens.
The secretary-general of the Turkish Foreign
Ministry had already indicated to American and British diplomats
that the Turks might assume a less militant line than had been
expected. Menderes has ordered additional precautions in Istanbul
to prevent any "untoward incident" after a visit there. The deputy
governor of Istanbul told the American consul-general on 16 April
that "any and all" demonstrations would be prohibited, but he
warned that the prime minister could reverse that decision at any
time. The embassy points out that 23 April is a Turkish national
holiday, and would be a logical day for a popular demonstration.
Makarios appears to be treading cautiously
among rival Greek factions in Athens and is receptive to official
Greek counsel of moderation. After an interview with Foreign
Minister Averoff the evening of 17 April, Makarios reiterated his
satisfaction with Athens' handling of the Cyprus issue and said he
planned further conferences with government leaders.
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Ise
4. ICISHI PROPOSES US AND JAPAN CO-OPERATE IN
ECONOMIC DEVELOPMENT OF SOUTHEAST ASIA
Prime Minister Kishi, in the third of a
series of discussions with Ambassador
MacArthur on US-Japanese co-operation,
has proposed that the US, in concert with
'Japan and other non-Communist countries, establish an
Asian development fund which would provide the necessary
capital for economic development of Southeast Asian coun-
tries. He believed such a fund could also be used to adjust
the demand and supply of certain primary products of the
area, and to provide a credit mechanism for facilitating
trade.
Kishi also suggested that the US help fi-
nance a Japanese investment agency which would provide
long-term, low-interest loans. He recommended that the
US render financial assistance on specific projects already
planned by Japan and the countries in Southeast Asia, "con-
sider" Japan in connection with US aid projects, establish
joint US-Japanese technical training centers, and encourage
the establishment of a branch of the World Bank in Tokyo.
Kishi commented that the military aspect
of US-Japanese co-operation has been overemphasized and
said that it is an urgent necessity to demonstrate to the Jap-
anese people that economic co-operation is one of many other
fields in which mutual benefits can be obtained.
Comment Latent suspicion of Japan's intentions,
political instability in Southeast Asia,
and well-entrenched European and Indian interests are hand-
icaps in strengthening Japan's ties in the area.
In response to pressure from within his
Liberal-Democratic Party to demonstrate Japan's "independ-
ent" policy, Kishi plans to make a trip through Southeast Asia
before coming to Washington. He also intends to appoint rov-
ing "economic" ambassadors in several areas, including South-
east Asia, to improve the atmosphere for economic co-opera-
tion with Japan.
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5. SOVIET LEADERS EXPRESS OPTIMISM FOR IMPROVED
INTERNATIONAL RELATIONS
Comment on:
Soviet leaders Khrushchev and Bulganin,
in a farewell conversation with Ambassador
Bohlen, expressed optimism for a relaxa-
tion of "international tension" and an im-
provement of relations with the United States and other Western
countries.
Khrushchev indicated that he felt the cur-
rent London disarmament conference had gotten off to a better
start than previous meetings, and expressed the hope that some-
thing positive would be accomplished.
On the subject of German reunification, how-
ever, Khrushchev and Bulganin maintained the official Soviet
position since the Geneva summit conference of July 1955 that
the Soviet Union was not prepared to go any further than to fa-
cilitate contacts between the two German states for the purpose
of working out unification.
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6. MIKOYAN COMMENTS ON POLITICAL EFFECT OF
SOVIET INDUSTRIAL REORGANIZATION
Reference:
The forthcoming decentralization of
Soviet industrial administration will
over a period of time affect the political
structure of the Soviet Union and result
my for local institutions, in the opinion of
First Deputy Premier Anasta,s Mikoyan. At a farewell
luncheon for Ambassador Bohlen on 17 April, Mikoyan at-
tributed the possibility for greater local autonomy in eco-
nomic and "eventually" in pol.itical matters to the increase
in numbers of trained people in the provinces. He agreed
with Bohlen that many forms of Soviet administration, par-
ticularly in the political field, were hangovers from the past,
adding that this has been the essence of the tasks confront-
ing the leadership since Stalin's death.
The principle of collective leadership,
according to Mikoyan, was not only being maintained but
was being continuously strengthened and developed.
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7. ADEN-YEMEN DEVELOPMENTS
Comment on:
Yemen's proposal on 16 April to meet
with a British representative along the
troubled Aden Protectorate frontier "to
restore peaceful conditions according
to the 1934 treaty" appears to have met
conditions which London has long con-
sidered requisite for a meeting. Subject
to the concurrence of the Colonial Office,
the Foreign Office hopes to inform Yemen
of British willingness to have local rep-
resentatives meet as soon as possible.
Yemeni willingness to advance acceptable
conditions, following months of equivocation
and anti-British propaganda, appears to
have been spurred largely by recent firm British counteraction
following Yemeni-instigated attacks along the Aden Protectorate
frontier. One incident on 6 April is believed to have been pro-
voked to coincide with a visit to the Yemen frontier by an Arab
League mission. During the same period several engagements
flared in the Beihan area which were effectively countered with
British artillery fire and air strikes against several Yemeni
border forts. The vigor of the British reaction roused the Imam
to ask his minister in Cairo to seek a Russian declaration that
unless British attacks on Yemen ceased, Russia would inter-
vene to prevent aggression. The Imam added that a "major"
British attack had destroyed three forts, and urged speedy de-
livery of additional arms from the Soviet bloc.
Yemeni participation in negotiations for
a frontier peace seems unlikely to change the Imam's apparent
determination to gain control of Protectorate areas by terror
and subversion. The Yemeni minister in Cairo described re-
cent British reinforcement of Aden as a threat "which could
annihilate the nationalists in the Yemeni South (Aden Protecto-
rate);' and the Imam on 10 April concurred in his minister's
suggestion that it would be wise "to pacify the frontiers and
start a blaze within the South:'
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8. PRO-SOVIET DIPLOMAT TO BE BURMESE PREMIER'S
PERSONAL SECRETARY
U Ohn, for many years the Burmese
ambassador in Moscow, has become
personal secretary to Premier Nu, ac-
cording to an official announcement in
angoon.Oh�i�aces U Thant, who is to become Burma's
permanent representative to the United Nations. Ohn is be-
lieved by the American embassy to be close to the Soviet
embassy.
Comment U Ohn is a member of the Socialist
oligarchy which dominates the Burmese
government, and his appointment to this influential position
has long been anticipated. Since his college days in the 30's
he has never concealed his pro-Communist inclinations. In
his new position, Ohn will be in daily contact with the pre-
mier and his advice will probably carry considerable weight
in the determination of both domestic and foreign policies.
Although a moderate and devout Buddhist,
U Thant is unlikely to be as aggressively anti-Communist in
the United Nations as U Pe Kt; the man he is relieving.
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9. OVERSEAS CHINESE EFFORTS TO INFLUENCE
Tnirr m TI TAT 1G1 T r1 mrnalaci
The Overseas Chinese in the Philippines
of which there are about 300,000, are
to be martialing extensive
financial resources for use in the forth-
coming political campaign. The Federation of Chinese
Chambers of Commerce (FCCC) plans to raise $250,000
for this purpose, and this will represent only a small por-
tion of available Chinese money after private contributions
have been made to various candidates.
The extent of Chinese interest in Philip-
pine political affairs is further indicated by a report that
President Garcia will meet the Chinese Nationalist ambas-
sador and the vice president of the FCCC on 20 April, at
which time the Chinese leaders hope to obtain a written
agreement for the resolution of differences between the two
governments in return for financial backing for Garcia's cam-
paign. The Chinese are strongly opposed to the retailtrade nation-
alization law, which is aimed primarily at Chinese enterprises.
Not all of the initiative in this matter is
being exercised by the Chinese, however. Senator Jose Laurel
allegedly is exploiting Chinese apprehensions to win Chinese
support for the vice-presidential candidacy of his son, the
Speaker of the House. Mayor Arsenio Lacson of Manila is al-
so reported to be eagerly seeking Chinese financial assistance.
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Aide
ANNEX
Watch Report 350, 18 April 1957
of the
Intelligence Advisory Committee
Conclusions on Indications of Hostilities
On the basis of findings by its Watch Committee, the
Intelligence Advisory Committee concludes that:
A. No Sino-Soviet bloc country intends to initiate hostilities
against the continental US or its possessions in the imme-
diate future.
B. No Sino-Soviet bloc country intends to initiate hostilities
against US forces abroad, US allies or areas peripheral
to the Orbit in the immediate future.
C. A deliberate initiation of hostilities by either Israel or
the Arab states is improbable in the immediate future.
Unsettled issues and tensions, particularly the internal
situation in Jordan, continue to constitute possibilities for
violence. Should there be intensified disorders or civil
war in Jordan, military intervention by neighboring Arab
states probably would occur, and Israeli intervention would
be a possibility.
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