CURRENT INTELLIGENCE BULLETIN - 1955/12/23

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03020469
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 11
• Document Creation Date: September 20, 2019
• Document Release Date: September 26, 2019
• Publication Date: December 23, 1955

Approved for Release: 2019/09/16 C03020469
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CURRENT
INTELLIGENCE
BULLETIN
3.3(h)(2)
3.5(c) 23 December 1955
fr��
Copy No. 103
DOCUMENT NO. -34-
NO CHANGE IN CLASS.
DECLASSIFIED
CLASS. CHANGED TO: IS S C
NEXT REVIEW DATE- 2 ni 0
AUTH: HR 70-2
DATE:
EVIEWER
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
-TOP"-S-E-C-RETT
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Two,
CONTENTS
1. PARAGUAYAN MILITARY REBELLION REPORTED
QUELLED (page 3).
2. AFGHANISTAN RELEASES MORE FUNDS TO MORRISON-
KNUDSEN COMPANI (page 4).
3. POLES MAKE DETERMINED EFFORT TO GAIN ARABIAN
RAILROAD SURVEY CONTRACT (page 5).
4. DISORDER INCREASING IN ALGERIA
(page 6).
5. INCREASED COMMUNIST ACTIVITY IN CENTRAL LAOS
REPORTED (page 7).
6. NASR CALLS CONFERENCE OF ARAB LEADERS ON
JORDAN (page 9).
THE ARAB-ISRAEI.41 SITUATION
(pago 1;0)
23 Dec 55
Current Intelligence Bulletin Page 2
Pr" n re, in rim I
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1. PARAGUAYAN MILITARY REBELLION REPORTED
QUELLED
President Stroessner announced on
22 December that the "command
crisis" which broke out on 21 Decem-
ber in the First Cavalry Division "is
headed toward a satisfactory solution."
The rebellion in this key unit was
touched off by Stroessneris order for
the arrest of Epifanio Mendez Fleitas,
Central Bank president and a contro-
versial leader of the ruling Colorado
Party.
Stroessner and other conservative
elements in the Colorado Party wish to remove Mendez
from his politically strategic job, not only because of po-
litical rivalry, but because they, variously consider him to
be pro-Peron, corrupt and leftist. Mendez and his follow-
ers, on the other hand, would like to reduce the tradition-
ally dominant political power of the military.
The Argentine government is reported
to have made the removal of Mendez a prerequisite for grant-
ing the economic co-operation which Paraguay urgently needs--
trade having virtually ceased since Peron was ousted last
September. Buenos Aires is probably concerned over plot-
ting by Peronista exiles and the extent to which pro-Peron
Paraguayan officials would be willing to limit such activity.
While Stroessner, as commander in chief
of the armed forces, still appears to hold the stronger posi-
tion, Mendez has made some progress in undermining Stroess-
net.% military support by granting special favors to younger
officers, including the commander of the First Cavalry Divi-
sion. In addition, Mendez is said to have the support of the
police and of the head of the Colorado Party.
It is evident that Stroessner has not yet
resolved the crisis.
23 Dec 55 Current Intelligence Bulletin
Page 3
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2, AFGHANISTAN RELEASES MORE FUNDS TO
MORRISON-ICNUDSEN COMPANY
The Afghan government has ordered
$800,000 released to the Morrison-
Knudsen Company for current expenses,
according o e company's manager in Afghanistan. The
company has been authorized to resume purchasing and
shipping through Pakistan, and its manager is recommend-
ing that the sending of personnel to Afghanistan be resumed.
Comment
This sum is apparently in addition to
the $700,000 released in recent weeks
and previously reported.
Kabul's actions in favor of Morrison-
Knudsen suggest that the Afghans, in an effort to counter-
balance the effect of the Bulganin-Khrushchev visit, mean
to keep the Helmand Valley project under American aus-
pices.
23 Dec 55
Current Intelligence Bulletin Page 4
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Nord
3. POLES MAKE DETERMINED EFFORT TO GAIN ARABIAN
RAILROAD SURVEY CONTRACT
The Polish organization responsible for
Polish industrial construction in other
countries has submitted the low bid for
a survey of the Hejaz rail line recon-
struction pro'ect which would extend
n to edina
reconstruction of the line.
T e � erence �e ween e o ish bid of $440,000 and the
next lowest bids, $780,000 by an American firm and $865,000
by a Japanese firm, demonstrates that Warsaw is determined
to win the subsequent contract for actual construction of the
line.
The Hejaz commission will recommend
acceptance of the Polish offer, although it realizes that the
bid is far below the estimated cost of the survey, and recog-
nizes it as a Soviet-backed penetration effort. The final de-
cision as to which firm will receive the survey contract is,
however, to be made by King Saud. (Prepared by
ORR)
23 Dec 55
Current Intelligence Bulletin Page 5
oveNnrtryl
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4. DISORDER INCREASING IN ALGERIA
Jacques Chevallier, the French mayor
of Algiers, has,told the American consul
general that the Algerian Assembly has
been paralyzed by the mass resignation
of Moslem members. Moslem admin-
istrative officials throughout Algeria, threatened with assas-
sination if they do not resign by the time of the 2 January
elections in France, are leaving office in increasing num-
bers. Clashes between the nationalists and the French re-
portedly have resulted in about 90 deaths in three days.
Terrorist activities will probably be stepped up over the
holiday season, and propaganda leaflets calling for greater
violence at that time are being circulated in the cities, The
175,000 French ground and air forces in Algeria are being
reinforced.
Chevallier believes that Governor Gen-
eral Soustelle must be replaced, as he has lost the confi-
dence of the Moslems. The mayor thinks the Moslems
would still support a federal arrangement between France
and Algeria, but in the opinion of the consul general, the
French will have to spell out the details and timing, of an ac-
ceptable solution before the nationalists will lay down their
arms.
The anticipated early consideration of
the Algerian issue by the French National Assembly after
the 2 January elections will be handicapped by the lack of
Algerian representation.
23 Dec 55
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CONFIDENTIAL
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5. INCREASED COMMUNIST ACTIVITY IN CENTRAL LAOS
REPORTED
Pathet Lao-Viet Minh activity has in-
creased radically in Khammouane
Province, central Laos, during the last
two months
sighting Lao-
Viet units, ranging in size from two to bu men, on 38 sepa-
rate occasions during this
CHINA period. Nct z111 of these
groups were armet Se-
curity in the province is
the worst in any of the ten
under the government's con-
trol. Police and army re-
inforcements were recently
sent there, presumably in
anticipation of disorders
during the 25 December
elections.
. PATHET LAO PROVINCES
NORTH
VIET
NAM
Comment This report
indicates a
considerable Communist
capability for subversion
and sabotage in central Laos.
Although Khammouane Prov-
ince, on a main communica-
tions line from Viet Minh-
held central Vietnam, is
apparently the most heavily infiltrated, the Communists are
believed to be increasing their capabilities in other central
and southern provinces as well. A recent Pathet Lao defec-
tor said that guerrilla operations by small units throughout
the country are planned.
The government's military problem in the
north has forced the concentration there of most of its military
units. A withdrawal to meet security threats elsewhere would
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Current Intelligence Bulletin Page 7
CrirDE'T
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weaken government pressure on the Pathet Lao's base
areas and perhaps preclude any plans to reassert royal
�authority there by large-scale military action.
The Pathet Lao is urging the people to
abstain from the national elections on 25 December, and
bands of Lao-Viets such as those reported would be able to
intimidate isolated localities.
23 Dec 55
Current Jntelligence Bulletin Page 8
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6. NASR CALLS CONFERENCE OF ARAB LEADERS ON
JORDAN
Comment
The Saudis have previously suggested
that Arab states should replace the
British subsidy to Jordan, which amounts to about $33,000,000
annually, but have never made a concrete offer.
It is unlikely that the Saudis would� live up
to such a commitment. However, if the present political un-
rest in Jordan continues, Hussain may feel that the safety of
his throne depends on weakening his ties with Britain.
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Current Intelligence Bulletin Page 9
PriThr-r-rvDruT'
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THE ARAB-ISRAELI SITUATION
(Information as of 1700, 22 December)
No significant military activity has
been reported.
On 30 November the secretary general of the Italian Foreign
Ministry told the American embassy that it would become in-
creasingly difficult to resist domestic pressure for the sales
of arms to the Middle East as a result of delays in the Wash-
ington talks and reports that the French were continuing to sell
arms to that area./
23 Dec 55
Current Intelligence Bulletin Page 10
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