CURRENT INTELLIGENCE BULLETIN - 1956/07/04

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03015174
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 11
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: July 4, 1956

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TOP SECRET 307 41/47
3.3(h)(2
3.5(c)
CURRENT
INTELLIGENCE
BULLETIN
4 July 1956
Copy No. 105
,
DOCUMENT NO.
NO CHANGE IN CLAS
! DECLASSIFIED
CLASS. CHANGED TO: TS S C
NEXT REVIEW DATE:
,A3u'
A;,11:1744iHEVIEwER
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
00'
TOP SECRET-
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AL %we AO 8..4 lo11.�
CONTENTS
1. SYRIA RECOGNIZES COMMUNIST CHINA
(page 3).
2. YUGOSLAVIA TAKES SOVIET BLOC LINE ON POZNAN
OUTBREAK (page 4).
3, GREEK FOREIGN MINISTER COMMENTS ON SHEPILOV'S
VISIT (page 5).
4. rMt'NI'S RELATIONS WITH THE COMMUNIST
(page 6).
5. FULFILLMENT OF POLISH-BURMESE TRADE AGREEMENT
THREATENED page 7).
6. INDONESIA REPORTED DISSATISFIED WITH DELAY IN EAST
GERMAN CONSTRUCTION OF SUGAR WLI
(page 8).
7. YEMENI-SOVIET AID AGREEMENT
(page 9).
* * * *
THE ARAB-ISRAELI SITUATION
(paie 10)
4 July 56 Current Intelligence Bulletin Page 2
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CONFIDENTIAL
1 SYRIA RECOGNIZES COMMUNIST CHINA
Syria's recognition of Communist China
on 2 July reflects strong anti-Western
sentiment and is an expression of Syria's
antagonism toward what it considers the
"pro-Israeli, pro-Baghdad pact" policy
of the United States. It is also an attempt to underscore Syria's
endorsement of Egypt's policy of "independence." Egypt has
been campaigning to get other Arab states to follow it in its
� recognition of Peiping on 16 May.
A high Foreign Ministry official told the
American embassy in Damascus prior to the visit of Soviet
foreign minister Shepilov that Syria did not expect to receive
anything concrete as a result of the visit, but if it did, recog-
nition of Communist China would be an "appropriate, easy,
and inexpensive" quid pro quo.
4 July 56
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�COM TDENT1A
Nov Nolo
2. YUGOSLAVIA TAKES SOVIET BLOC LINE ON
POZNAN OUTBREAK
Comment on:
The Yugoslav press attack on the Poz-
nan rioters as "enemies of democratic
socialist Poland" is a measure of the
extent to which Yugoslavia is aligning
itself with the Soviet bloc. Editorial com-
ment directs the blame primarily toward
"reactionary" forces. The Yugoslav treat-
ment adds the warning that Stalinist ele-
ments may be strengthened as a result and
"democratization" of the country retarded.
Borba, the leading Yugoslav newspaper,
calls the outbreaks a "reactionary and destructive gesture
which will probably have repercussions beyond the Polish
frontiers." According to another commentary, the effective
counteraction "shows how unrealistic all plans to hamper the
true socialist development of Poland are."
Three years ago Yugoslav vice president
Edvard Kardelj praised the East German demonstration and
the Czech currency riots of June 1953 as workers' actions with-
out parallel "except in the struggle of the Yugoslav working
class against Soviet pressure' He welcomed them as a pro-
test against the stagnant "state-capitalist" relations forced on
the workers by the Stalinist Soviet system.
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3. GREEK FOREIGN MINISTER COMMENTS ON
SHEPILOV'S VISIT
Greek foreign minister Averoff told the
American ambassador in Athens that
Soviet foreign minister Shepilov im-
pressed Greek officials as "astute, flex-
eana in gent" and that he was "sweetly reasonable and
disarming" during the lengthy conversations.
Shepilov indicated that Greece could share
in the "tremendous resources of the USSR--such as the un-
believable riches of the Urals�which must be used for the
peaceful development of the world!' He said that Moscow was
ready to aid Greece with a large number of projects including
electric power development, a sugar refinery and farm mech-
anization.
The discussions on specific points raised
by the Greeks were apparently inconclusive. Shepilov avoided
any new endorsement of the Greek position on Cyprus and shied
away from Greek proposals that the USSR buy some of the large
tobacco surpluses.
Athens appears to have been careful to make
no commitments which might prejudice its pro-Western position.
At the same time, it has not closed the door to any future Soviet
approaches and thus has left itself room to maneuver between
Western and Soviet offers.
Prime Minister ICaramanlis side-stepped a
Soviet offer to visit Moscow, saying that he would consider a
visit when he sees "demonstrable progress on improving rela-
tions:'
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NENITI'S RELATIONS WITH THE COMMUNISTS
Pietro Nenni, chief of the Italian Social-
ist Party, has reportedly said
that he considers it unnecessary to de-
nounce openly his party's unity-of-action
pact with the Communists since "the pact
just isn't there any more:' He was unsure,
however, whether he would be able to get
his party to follow him in giving the party
a p orm $ own" and in seeking co-operation with "those
democratic forces willing to reach a reasonable compromise
for the implementation of a joint program:'
These remarks are consistent with other
hints from Nenni that he now feels it would be profitable to
break with the Communists�if by doing so he could form a
new alliance with parties in the present government coalition.
The American embassy in Rome points out, however, that
"assuming he wants to 'go' anywhere," there are a number
of important factors tending to restrain him in addition to
those pushing him toward a break with the Communists. Re-
straining factors include the strength of pro-Communists in
Nenni's party, the reported Communist financial support of his
party, the Socialists' joint participation in the Communist-led
labor and other mass organizations, and the "unity-of-the-work-
ing-class" slogan.
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NR�01
5. FULFILLMENT OF POLISH-BURMESE TRADE
AGREEMENT THREATENED
k Polish trade representative in Rangoon
have expressed
essimism on 13 June regarding the pros-
ects for the successful fulfillment of the
birter agreement'between Burma and Poland. He said Po-
land had been forced to accept a considerably lower grade of
rice than called for in the trade agreement. He also stated
the Burmese were apprehensive that the goods to be supplied
by Poland would be inferior to similar products manufactured
In the United Kingdom, the United States, and Japan. The
Polish official conceded that these fears were well founded.
Comment
Burma has been increasingly dissatisfied
with its barter agreements with bloc coun-
tries and has tended to discriminate against them in favor of
cash customers. Poland is slated to take 50,000 tons of Bur-
mese rice this year. Actual shipments, however, may not
reach that total, as only 11,000 tons have been shipped to date.
4 July 56
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6. INDONESIA REPORTED DISSATISFIED WITH DELAY
IN EAST GERMAN CONSTRUCTION OF SUGAR MILL
Reported differences of opinion between
Indonesia and East Germany over the
building of a badly needed sugar mill in
Jogjakarta may induce a more cautious
attitude on the part of the Indonesians toward a recent East
German offer to supply capital goods on a long-term credit
basis. Such an attitude may also be reflected in forthcoming
trade and aid negotiations with other European Satellites and
the USSR.
The mill was scheduled to commence opera-
tion in September, but only one third of the Machinery is said
to have arrived at the site. Moreover, the plant's foundations
and a connecting railway spur were far from being completed
as of last April. In this connection, Indonesia reportedly will
ask East Germany to speed up deliveries so the project can be
completed by the end of 1957.
Although the delay may be partially due to
the failure of the Indonesians to provide proper financing and
transportation facilities for the imported equipment, the East
Germans will almost certainly be blamed.
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"
7. YEMEN1-SOVIET AID AGREEMENT
-The USSR has offered to build a new
port at Hodeida on the Red Sea, accord-
ing to a spokesman for the Yemeni lega-
tion in Cairo. The Soviet offer, which
was accepted in principle and is now un-
der study, was made in connection with a trade and economic
agreement concluded on 23 June in Moscow. The agreement
provides also for a number of Yemeni students to study mining
and oil research and ex-
ploitation at Moscow
415
Saudi Arabia
University. In addition,
Moscow has offered to
supply Yemen with agri-
cultural machinery,
tractors and well-drill-
ing equipment.
Comment Yemen has
been attempt-
ing to get arms and eco-
nomic aid from the USSR
since early March.
It is not
yet known whether Badr was successful in getting arms or in
persuading the USSR to prospect for oil on the Kamaran Islands,
which are now claimed by both Britain and Yemen.
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J LA-1UL 1
Noe NrisiO
THE ARAB-ISRAELI SITUATION
(Information as of 1700, 4 July)
Rumors that Israeli troops are concentrat-
ing on Jordan's frontier have caused alarm in Arab capitals. The
press in Beirut and Damascus has headlined the rumors, Arab leadie
ers are consulting, and Egypt and Jordan reportedly have ordered
their frontier troops on special alert. However, UN 'Truce Super-
visor Burns told the press on 4 July that he had no infOrm-tion of
such Israeli action in the Jerusalem area and had received no offi-
cial complaints. The Israeli Foreign Ministry has described the
rumors as "pure fabrication." It appears that the current tensions
were generated largely by Israeli foreign minister Myerson's re-
cent assertion that Israel felt free to resume work on diverting the
Jordan River waters. Apparently,Jordan's King Hussain also con-
tributed to Arab concern by his statements on 3 July to Arab and
Western diplomats in Amman that the Israeli government's present
attitude would result in armed aggression against Jordan. Hussain
emphasized to the American, British and French ambassadors that
If this happened the other Arab states would come to Jordan's aid.
According to the Egyptian radio, Jordan has
complained to the Mixed Armistice Commission that Israeli flights
over Jordan have increased in the last two weeks
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