CURRENT INTELLIGENCE BULLETIN - 1955/12/22

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03020468
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 10
• Document Creation Date: September 20, 2019
• Document Release Date: September 26, 2019
• Publication Date: December 22, 1955

Approved for Release: 2019/09/16 C03020468
TOP SECRET r,
CURRENT
INTELLIGENCE
BULLETIN
22 December 1955
Copy No. 0 3
DOCUMENT NO. 3'3
NO CHANGE IN CLASS.
I DECLASSIFIED
CLASS. CHANGED TO: TS S C
NEXT REVIEW DATE. 201
ALITH: HR 70-2,
DATE: REVIEWER: L
OFFICE OF Cu RENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
-T-O-P"-SEC�RET
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CONTENTS
1 RANGOON CONSIDERING SOVIET OFFERS TO UNDERW
BURMA'S ECONOMIC DEVELOPMENT PROGRAM
(page 3).
2. USSRREPORTEDLY OFFERS LARGE CREDIT TO ECUADOR
page 4)0
3. POSSIBILITY OF A REVOLT IN CHILE
page 5),
4. iwnnwrgrew ?RIME MINISTER'S POSITION WEAKENING
(page 6).
5. GREEK PRIME MINISTER PriSNCi MOVE ON CYPRUS
ISSUE BEFORE ELECTIONS (page 7)0
6. DnQrr-Drutrty"ENT OF THE SUPREME SOVIET SESSION
(page 8).
22 Dec 55
* * * *
THE ARAB-ISRAELI STT T TA7N
Current Intelligence Bulletin Page 2
TOP SEMPT
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Now
1. RANGOON CONSIDERING SOVIET OFFERS TO UNDERWRITE
BURMA'S ECONOMIC DEVELOPMENT PROGRAM
A high Burmese planning official told the
American embassy in Rangoon on 18 De-
cember that his government is seriously
considering a Soviet offer to provide all
the assistance necessary to carry out Burma's economic de-
velopment program, He stated that even U Kyaw Nyein, the
most outspokenly anti-Communist member of the Burmese
cabinet, had reached the conclusion that Burma had no alter-
native but to accept this Soviet aid. The Burmese official
stated that he was preparing comprehensive project requests
to be submitted to the Russians.
Comment Any sweeping Soviet offer which appears
to promise quick results would appeal to
the Burmese, whose economic planning has always been
grandiose. Burma is attempting by 1960 to raise its gross
national product by one third over the prewar level.
The Burmese are confident that their
ability to maintain control of Burma's destiny will not be se-
riously impaired by exclusive Soviet participation in their
development plans. So far they have exhibited little suspicion
that strings might be attached to Soviet aid offers. They have
frequently complained cif thP red tape and restrictions involved
in Western offers, (Concurred in by ORR)
22 Dec 55
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SEC1ZET
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2. USSR REPORTEDLY OFFERS LARGE CREDIT TO
ECUADOR
Comment
Ecuador, considered a poor credit risk
by Western countries, has been unable
to gain additional funds for its relatively large-scale devel-
opment projects and may turn to Moscow for economic aid.
The USSR may also consider Ecuador vulnerable because of
its long-standing boundary dispute with Peru and its inability
to obtain arms.
Communist offers of generous credits are a
prominent feature of the Kremlin's program to gain influence
in underdeveloped countries, (Concurred in by ORR)
22 Dec 55
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3 POSSIBILITY OF A REVOLT IN CHILE
Many rumors and newspaper stories
have appeared of an abortive plot
against the government of President
Ibanez which was to have taken place
on 19 December, according to the
American embassy in Santiago.
According to the embassy, the guard
around the presidential palace has been increased, but the
government has made no comment, and Santiago remains
calm.
Comment The fact that Ibanez has failed to alle-
viate Chile's economic problems has
reduced public confidence in his administration to an all-
time low. The cost of living, for instance, has been in-
creasing at the rate of about 6 percent per month for the
past two years. Unrest is further increased by the refusal
of 15,000 copper workers to return to work despite orders
from the government that they do so.
22 Dec 55
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"6..or � 'I I A A! �4L � .1 f�S. 1.4
4. INDONESIAN PRIME MINISTERS POSITION WEAKENING
The position of Prime Minister Harahap,
who has been unable, in the face of Pres-
ident Sukarno's opposition, to get the
necessary political support for a solution
to the air force dispute, has been further weakened as a re-
sult of returns coming in from the 15 December elections
for a constituent assembly in Indonesia. With over a third
of the vote counted, the returns show the National Party,
Communist Party, and Nandlatul Ulama polling better than
they did at a comparable point in the count of the September
parliamentary vote, and the Masjumi doing worse.
Harahap, meanwhile, is apparently search-
ing for a foreign policy victory on the emotionally charged
Netherlands New Guinea issue to counter his domestic diffi-
culties. On behalf of the prime minister and Vice President
Hatta, a Foreign Ministry official asked the American am-
bassador to see what could be done to bring to a successful
conclusion current negotiations between Indonesia and the
Netherlands on the whole range of their relations.
The Harahap government entered the nego-
tiations on 10 December without the support of at least three
parties in the government coalition. The Netherlands is un-
likely to make any concession on the New Guinea issue which
could aid Harahap in his domestic political difficulties.
22 Dec 55
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CONFIDENTIAL
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%NJ
'toe
Neale
5. GREEK PRIME MINISTER PLANS NO MOVE ON CYPRUS
ISSUE BEFORE ELECTIONS
The prime minister now plans to dis-
solve parliament in mid-January and hold elections at the
end of February. He says he will remain in office during
the election campaign if the Cyprus issue is "reasonably
quiet"; otherwise, he will resign in favor of a caretaker
government. He expects discussions to be resumed be-
tween Cypriot archbishop Makarios and Cyprus' Governor
Harding.
Comment Karamanlis apparently intends to with-
hold commitment on the Cyprus issue
until the Greek elections, since an agreement without a
fixed date for self-determination would jeopardize his elec-
toral prospects.
Karamanlis apparently expects Makarios
to resume negotiations with Harding on his own responsi-
bility, in the hope that this would reduce terrorist activity
on Cyprus pending the elections It is doubtful that Makarios
would enter new talks with Harding without overt Greek sup-
port.
22 Dec 55
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1.0 No, 4 � 4 4 11.." 4.4 J. I 4
'NW
6. POSTPONEMENT OF THE SUPREME SOVIET SESSION
Postponement of the USSR Supreme
Soviet session from 23 December
to 26 December may indicate that a
plenum of the party central committee will be convened
during the intervening period. A central committee plenum
at this time would suggest unreconciled disagreements within
the party presidium over foreign and domestic policies. Con-
troversies to be resolved at this time possibly are connected
with the Soviet budget or with the Khrushchev-Bulganin trip
�to South Asia. Resolution of such controversies might be fol-
lowed by important changes in the party hierarchy.
Since Bulganin and Khrushchev returned
to Moscow late on 21 December, it is also possible that more
time is required to prepare a full report on the foreign aid
program for South Asia to which they committed the USSR.
Postponement of a meeting of the Supreme
Soviet has occurred at least twice since Stalin's death. In
March 1953, a session was delayed to enable the central com-
mittee to accept Malenkov's resignation as secretary. A meet-
ing scheduled for 28 July 1953 was postponed to 5 August, pre-
sumably to allow Malenkov time to secure acceptance for the
"new course" economic policy which he presented at that ses-
sion.
22 Dec 55
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THE ARAB-ISRAELI SITUATION
(Information as of 1700, 21 December)
No significant military action has been
reported. Jordan, however, has lodged a complaint with the
Mixed Armistice Commission charging that Israelis fired on
a Jordanian patrol in the Hebron district and alleging other
Israeli "provocations."
22 Dec 55
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TOP SECRET
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