CURRENT INTELLIGENCE BULLETIN - 1956/07/29

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03015178
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 8
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: July 29, 1956

Approved for Release: 2019/10/23
CURRENT
INTELLIGENCE
BULLETIN
0 p ,gr7
if 0
29 July 1956
Copy No. 105
_
DOCUMENT NO.
NO CHANGE IN CLASS.,"
I DECLASSIFIED
CLASS. CHANGED TO:
NEXT REVIEW DATE:
'JTH: HR 70-
; ..? frit). REVIEWER: .
3.5(c)
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
TOP SECRET
A
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CONTENTS
1. BRITISH AND FRENCH WANT STRONG ACTION AGAINST
EGYPT ) (page 3).
2. WORLD REACTIONS TO SUEZ CANAL SEIZURE
(page 4).
3. LAOTIAN P WITH PATHET LAO LEADER
ON 30 JULY (page 5).
4. CONSTITUTIONAL CRISIS SEEN POSSIBLE IN SOUTH KOREA
(page 6).
THE ARAB-ISRAELI SITUATION
(page 7)
29 July 56 Current Intelligence Bulletin
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1. BRITISH AND FRENCH WANT STRONG ACTION
AGAINST EGYPT
At a 27 July meeting with American
and French representatives about Suez,
British foreign secretary Lloyd stated
that the British government felt it was
no go s ar mg any measures unless we are prepared to
take military measures in the end. . . if. . . necessary."
Lloyd said Britain was thinking of proposing to Egypt that
the canal be operated by a consortium, perhaps under the
UN, and then taking tripartite or broader "strong action" if
Egypt refused.
France, according to Ambassador Chauvel,
was also disposed to retaliate by selling more Mystere air-
craft to Israel, but Lloyd said Britain thought it imperative to
keep Israel out of the situation.
Comment Britain and France are reluctant to take
military action without United States sup-
port. A parachute brigade of about 2,000 men could probably
be detached from the 20,000 British troops on antiterrorist
duty on Cyprus in view of the improving situation there. About
20,000 more British troops are stationed in small contingents
elsewhere in the Middle East. An aircraft carrier, two cruisers,
and other smaller ships are now in the Mediterranean, and sey-
eral fighter-bomber squadrons are based in the area. In view of
the Algerian situation, any substantial French troop commitment
would probably require either further withdrawals from Germany
or a new call-up of reserves.
London in effect prevented the use of Egypt's
current sterling resources on 28 July by requiring Treasury
approval for transferring either sterling held by Egyptians or
any Suez Canal Company assets. In addition, Britain still holds
about $290,000,000 of Egyptian funds in the blocked sterling ac-
count set up during World War II. France has blocked the canal
company's funds in France, and has asserted administrative con-
trol over all Egyptian transactions in France.
29 July 56
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,, CONFIDE flAL
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2. WORLD REACTIONS TO SUEZ CANAL SEIZURE
Egyptian president Nasr's seizure of the
Suez Canal Company and his gestures of
defiance against threats of Western counter-
action have been received with unanimous approval by the press
and public in the other Arab states. Messages of support and
congratulation have been sent to Cairo by a number of Arab po-
litical leaders, most notably King Hussain of Jordan and Syrian
president Quwatli. The Syrian defense minister stated on 29
July that his country's army had taken "all preparatory meas-
ures to stand by Egypt in the face of all possibilities!' Politi-
cians in Lebanon, where the government is involved in a dispute
with the Iraq Petroleum Company, have hinted strongly that Nasr's
example should be followed, and some Syrian circles reportedly
are urging that the Iraq-Mediterranean oil pipeline be cut and an
appeal made to Arab workers to leave the oilfields if the West
uses force against Egypt.
A similar wave of emotional satisfaction
with the discomfiture of the West has swept the press of South
Asia, but in India and Ceylon the feeling appears to be tem-
pered with concern about the effect a dispute over the canal might
have on the economies of the area. Editorial opinion in both these
countries and in Japan puts emphasis on the need for a peaceful
settlement of the issue.
The Soviet reaction has been one of sympa-
thetic understanding of Nasr's action, which Pravda asserts is
legal; the Suez issue is described in a 29 July Pravda article
as one more illustration of the coming defeat of imperialism.
Western governments not directly involved
in the dispute have refrained from issuing statements. Greece,
where public opinion is already intensely hostile to Britain over
the Cyprus issue, is the only NATO country whose press ap-
proves Nasr's move.
29 July 56
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NNW
3. LAOTIAN PREMIER MEETING WITH PATHET LAO
LEADER ON 30 JULY
Comment
Souphannouvong is expected to offer a
settlement of the Pathet Lao problem in
exchange for a pledge of neutrality and "reintegration" of
Pathet personnel into the life of the country. The premier
has often indicated that he intends to take a tough stand with
his half-brother, but there are numerous indications that he
is vulnerable to the latter's blandishments and may be willing
to go so far as to take Pathet Lao representatives into the
Laotian government.
Such a settlement would clear the way for
Souvanna's projected trip to Peiping and would remove the pri-
mary obstacle to Laotian recognition of Communist China.
29 July 56
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4. CONSTITUTIONAL CRISIS SEEN POSSIBLE IN
SOUTH KOREA
A proposed amendment of the South
Korean constitution which would re-
move vice-president-elect Chang Myon
from succession to the presidency may
provoke a constitutional crisis if Rhee's
Liberal Party tries to force its enact-
ment. Chang, whose Democratic Party
is the major opposition party, would be
denied succession to Rhee by a provision
in the amendment permitting the vice president to serve out
the president's term only if both are members of the same
political party; otherwise a new election for president would
be required.
The amendment, drafted by two National
Assembly members belonging to minor opposition parties,
provides for limited parliamentary government by re-estab-
lishing the position of prime minister and empowering the
assembly to vote nonconfidence in the cabinet. These features
could attract opposition support for the amendment, while elim-
ination of the possibility that Chang and the Democratic Party
will inherit political control will attract the Liberals.
The fact that the Liberal Party will encounter
difficulties in obtaining the eight additional votes for a two-thirds
majority in the assembly, and that the amendment probably will
cost the Liberals some of their remaining popular support will
militate against any attempt to pass the amendment. There is
one report, however, that Liberal chief Yi Ki-pung has been per-
suaded to push the amendment with the understanding he would
become prime minister and use the power of this post to succeed
to the presidency when Fthee dies.
29 July 56
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THE ARAB-ISRAELI SITUATION
(Information as of 1700, 29 July)
Jordanian chief of staff Nuwar admitted to
UN secretary general Hammarskjold that Jordan is training
"fedayeen" units, according to the Jordanian foreign minister.
Nuwar reportedly asserted, however, that the fedayeen trained
by Jordan are "really commandoes and will be used purely for
defensive purposes," not for killing civilians. The British em-
bassy in Amman believes the Jordanian fedayeen strength is
about 200, and that their training was undertaken by the Jordanian
army as a control measure after the government became alarmed
by increasing numbers of EavDtian-trained fedaveen oDeratina in
Jordan.
King Hussain told the American ambassador
in Amman on 27 July that Jordan was continuing to to everything
in its power to bring the "present cycle of incidents" to an end.
The king said he regretted the wounding of UN observers by Jorda-
nian villagers on 25 July but did not find it surprising since the
villagers had been living under tension for years,
As a result of a ground" rectlfmaissance he con-
ducted in the Suez Canal zone on 25 and 26 July, the American mili-
tary attach�n Cairo doubts a previously reported British estimate
that four infantry battalions, a medium tank regiment and a heavy
tank unit have been moved into the zone. He believes elements of
each may be there, but he saw only a small number of infantry and
a total of 23 assorted tanks at various camps.
29 July 56
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